Posted on 01/02/2007 8:04:06 AM PST by devane617
a "guesstimate" based upon published statistics that half the sticker price of the vehicle is now labor costs. in order to compete at any level, gotta cut costs somewhere.
Ok.... sure.... stats like these (see Boroni-Bird) as a percent of MSRP:
Material Cost: 42.5%
Amortization and depreciation, r&d, pension, health care, advertising, and overhead: 21.5%
Dealer Markup: 17.5%
Manufacturing Labor: 6.5%
Sales incentives: 5%
Transportation and warranty: 4.5%
Profit: 2.5%
Well, that 6.5% is certainly not more than half. Even adding in the 21.5% which includes benefits intermingled with depreciation, r&d, etc, doesn't add up to half. And when you consider that depreciation and R&D at Ford account for over 10% of revenues (IE, more than 10% of MSRP), you'll find the idea that labor costs account for half the vehicle price is far from the truth.
Ford and Microsoft: Bringing an entirely new meaning to the term "Blue Screen Of Death".
Ford Zune coming soon
How about: Ford Zune coming Sune!
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