Emerson Motor Company Strategic Outlook: Inflation, Affordability, and the BKB Compact Sedan

September 15, 2020 At Emerson Motor Company, we recognize the economic pressures our customers face—particularly the impact of inflation on vehicle affordability. Like many in the automotive sector, we’ve seen production costs rise, even as the long-term value of our vehicles remains strong. Our responsibility is not only to deliver quality but to ensure the path to ownership remains accessible. Historically, our compact sedans—like the Emerson BKB—served as entry points for families and first-time buyers. Today, the BKB retails around $27,000, yet our benchmark remains rooted in a legacy of affordability. Growing up, I witnessed my father’s commitment to keeping compact vehicles under $10,000—a standard that shaped our ethos. While we aspire to return to that price point, we must reconcile it with modern realities: advanced electronics, evolving customer expectations, and performance demands. This challenge is not just financial—it’s strategic. Bonuses and wage increases have helped, but they cannot be our sole response. Our team is actively reviewing data from executive field visits, competitive benchmarking, and SWOT analysis to reimagine the BKB’s positioning. We are returning to the drawing board, leveraging our strengths—modular innovation, brand legacy, and stakeholder trust—to carve out a healthier market distance. Affordability is not a compromise—it’s a commitment. And Emerson is committed to leading with integrity, innovation, and empathy.