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So you will not be able to escape the rising costs of vehicle development.
So then the question is, why are you redesigning your old engine if the new engine design is worse? Your current engine design is only 6 years. It's still a fairly new design. You can easily go another 10 years on that design before you would get a significant advantage of a new engine design. You also have the added benefits of economy of scale with the old design. The price of the old engine has been driven down due to manufacturing it so much and for so long.
Redesigning the engine does not use the old engine as a starting point. It is a new design with the same focus as the old one.
In the real world, companies generally don't start a replacement design until the old engine is about 10 years. Some like the Ford Model T last 19 years. Others like the Chevy 350 go through several modifications and last around 30 years...
The game will start to penalize you for technology at 15 years for components. And 5 years for vehicle designs. From a pure profits standpoint, your best bet is to use your old engine until the ratings of the new engine is significantly better or until the age penalty is effecting you too much. And then you upgrade.
As for when you use modifications. The system has recently been changed. In Default build you can do it at anytime. Some folks like to do it all at once. In Testing build and newer, you are limited to once every couple of years. I personally would time these modifications with new generations of vehicles (do chassis and engine first, then use the refit system on the gearbox to save time). Thus I would spread out my 3-4 modifications of the old engine every 4 years in line with a new generation of vehicle. At 15-20 years old, it'll be time to retire the old engine. In which case you make the new one. Yes, it will be more expensive, everything is. Remember you paid for that old design 15-20 years ago, you have 15-20 years of experience building them. It's using 15-20 year old technologies...
Hey, just a tip, at least in the versions i played, redesigning increases manufacturing requirements, so it's totally fine to do if you are producing in europe or NY, but if you move to South America or other less skilled regions and don't have a super techy factory it's important to pay attention to it. Also, i don't know if i should be "answering" as i DO NOT KNOW (just wanna give life to the forum and maybe start a friendly conversation), but i do share your feeling of my skill having a big impact on ratings, my inner self is almost sure of it, but is totally empirical. Dev's attention to the forum is amazing right?
So for instance if you have a skill rating of 60, you'll need to have engines that are rated above 60 for the skill to continue to go up. RnD Teams only positively supplement the growth. So for instance 25% RnD Team sliders will increase growth rates by 0.1.
That is one way to do it. Another, probably easier way is to invest in racing. Design new engines frequently for race cars. At which point, unit costs don't really matter so much.
That being said, for the most part, getting perfect skill points is near impossible. At around 60 skill points you'll be able to unlock most things at the minimum available time lines.
Ratings are only calculated at design time. (When you hit "Build It".) So increasing your skill points after an engine has been designed will have no effect on that engine.
To add on to this, very recently I have made changes to manufacturing requirement's effects on production amounts per month. Making this rating much much more important than in current builds.
That being said, remember, unless you make a new generation or new trim with the modified component, you will still be using the older revision in the vehicle.
If I'm not mistaken, rates cap at 0.4 growth per turn with the current build. So they wouldn't stack above that value.
You can not make all the AI go bankrupt. After a certain amount of companies go out of business (or are bought out by you) the game will generate new companies to take their place. Thus preventing a empty game world.
Be careful with these tactics. I will be introducing anti-competitive lawsuits in the near future. :)
Select the "Component/Vehicle Inflation" check box under "Options 2" before starting a new game. This is enabled by default on harder difficulty levels.
Ah, I see. Thanks. Is there an option to turn inflation off completely?
Completely, no. Everything would be stuck at 1899 prices. You could disable economic fluctuations, and that will get rid of booms, recessions, and depressions. That makes inflation a bit more linear. And if you wanted to do some modding, you could make most of the other inflation systems in the game more linear as well. But hard coded inflation can not be edited or removed.