Typical cost to manufacture to retail price is 1 to 10. IOW if it is $66K the cost to make it was $6.6.K. However for certain things that highly subsidized like a Tesla the cost to manufacture is more than retail.
That hasn’t been true in automobiles in about 40 years
Cost to manufacturer a modern car is around 80% of sticker, roughly, if not higher
Trucks sell for a premium because of demand is stupid high on them, every guy or gal thinks they need one with 4 wheel drive. That is why
I also would never buy a ford or GM anything, total garbage these days
“Typical cost to manufacture to retail price is 1 to 10. IOW if it is $66K the cost to make it was $6.6.K”
If that truck is selling for 66k it cost way more than 6K to make.
I saw the actual numbers one time. GM makes about 5-7k on a typical $40-50k truck. That is why the manufactures stopped making subcompacts they were only making about $2-3k per vehicle.
Car companies have never had 90% margins or anything approaching that. I’d guess the true all in cost of a $50k truck is between $30-$40k including dealership costs. The marginal cost is lower of course but still nothing in the range of 10% of retail.
1 to 10..are you insane? The actual cost to manufacture a pick up is based on the options. The back up camera may cost the manufacturer 3-400 bucks . But they have to pay the assembly line person to put it in and the extra engineering for the mounts and electrcal connections. Figure around 450 bucks a truck. The dealer price will be 800-1100. . The mark up was 2-3x the cost. But the cost of the truck bare bones is probably 20k - bare bones . Add wheels, leather, carpet, stereo, cruise control, a quad cab, bigger wheels, chrome rims, chrome grill, blue tooth stereo, etc. boards etc. And the costs go up. A i would say the mark up goes up as the options go up. But 10-1 is a purely stupid GUESS. I would guess the dealer cost for a high end truck is probably 15-18 grand. Where as a bare bones f-150 my cost the dealer 17k amd they sell it for 23k. Dont forget shipping. Its real.
“Typical cost to manufacture to retail price is 1 to 10. IOW if it is $66K the cost to make it was $6.6.K. “
Myself having worked for Ford in Manufacturing believe that closer to 80% of MSRP is the Actual Manufacturing Cost. Your suggesting it closer to a $1./#.