AMS survey helps auto manufacturer properly forecast sales

The client, an automobile manufacturer, was sued by two customizers specializing in turning hard-top automobiles into convertibles, claiming tortuous interference. While the lawsuit was underway, the manufacturer announced its own plan to sell convertibles, and predicted sales of 30,000 cars annually. The plaintiffs based their estimate of damages on this number, claiming lost sales of 30,000 conversions per year. To determine the true number of likely conversions, Applied Marketing Science, Inc. (AMS) conducted two surveys. The first focused on individuals who had purchased a new convertible during the damages period and measured their interest in the client’s vehicle had it been available as a convertible. The second survey addressed purchasers of the original vehicle and measured their willingness to pay for a convertible conversion. The results showed that the actual number of conversions that might be achieved by the plaintiffs would have been merely in the hundreds. Based on this data, the case settled favorably for the client.