I’d really like to know what it actually costs. No freaking way is there $66,000 worth of material and labor there. The mark up has to be outlandish.
“No freaking way is there $66,000 worth of material and labor there. The mark up has to be outlandish.”
GM makes abour $5-7k on a typical pu/suv. Wages, healthcare/pensions/cost of goods etc.all start to add up quick
I wish the cost accountants would weigh in.
The”cost” of a manufactured product is far more than cost of materials and wages paid to workers. There are also depreciation costs of building amd maintaining and operating the factory. There are taxes paid by the manufacturer oj the property. There are utility costs as part of factory operations.
Cost accountants, pleae weigh in. I know these items just scratch the surface.
The point is, you can’t just take cost of materials and labor, and say that is the cost of the product, for any manufactured product.
Yes, indeed. Outlandish and outrageous. Haven’t purchased a new car since 1999. Every car since then has been a good, well maintained used vehicle. The last truck I bought in 2015 was a 2005 Dodge Dakota 4-door. Paid $500O cash. Still runs well but with 310,000 miles it’s beginning to show its age. I’ll donate it to charity or give it away to somebody who needs it when I find a replacement (used).
FCA had a 7% profit built in for the basic Jeep, with 13% on package upgrades. In 2018, they introduced a turbocharged straight-four engine into the lineup. The introduction stalled, such as to build an inventory glut on the dealer’s lot. Two years ago, incentives dropped the price $5000 to $13,000 from the MSRP, depending upon the package.
You bet there is, and then some. I've built a few in my lifetime just buying totaled wrecks at auction and literally re-building them from the ground up by scavenging parts and components from junkyards. You should try it. It will give you newfound respect for what it takes to design and build a modern automobile. Hey, just try building your own VW-powered dune buggy. It will give you a whole new appreciation for the automakers.
Of course there aren’t $66,000 worth of materials in there. You’re also paying for engineering. And manufacturing facilities. Vehicles don’t just materialize out of thin air.