Profits Made on Cars?
Discussion
I've always wondered this, but how much do you thinl a vehicle actually costs/how much profit per vehicle do automakers make on a car? I'm drunk by the way, just got from bar, haven't been out in almost 9 months and damn it was good fun!! Just had to get that in here 
Let's take a regular everyday car like a Ford Focus are something similar
And a sports car like, let's say a Corvette
And lastly, how about something like a Ferrari 458.
Any idea?
Let's take a regular everyday car like a Ford Focus are something similar
And a sports car like, let's say a Corvette
And lastly, how about something like a Ferrari 458.
Any idea?
Rollcage said:
Component cost for a FF Range Rover is about 16K IIRC. That might give you some idea, but you then have to factor in a huge list of on costs.......
That does give me an idea, thank you. But would suggest perhaps the "mark up" on autos is something like 30%? I guess it depends on what car though, as for a car listing at 60k probably wouldn't be the same as a car costing 20K. Do you think if a vehicle catches its list price on 60K the manufacturer is making 20K? I really have no idea so I apologize if that sounds too little or too much.edo said:
The development costs are huge - so these need to be factored in.
I read an article that a 911 Turbo is only £6k more to manufacture than a base Boxster.
Yup. I've read that the new Lotus range is costing around $240m per model, and they have a considerable crossover between the models.I read an article that a 911 Turbo is only £6k more to manufacture than a base Boxster.
Depends who you ask.
Component cost is quite cheap but by the time you add in contributions for labour&overheads, m&s, r&d, tooling, warranty, the list goes on and on. Couple of thousand max on small car, maybe 5 on a executive saloon, don't know on a expensive car.
General rule is the bigger the car the higher the profit.
Depending on how you look at it the original Ford ka never made real profit.
Component cost is quite cheap but by the time you add in contributions for labour&overheads, m&s, r&d, tooling, warranty, the list goes on and on. Couple of thousand max on small car, maybe 5 on a executive saloon, don't know on a expensive car.
General rule is the bigger the car the higher the profit.
Depending on how you look at it the original Ford ka never made real profit.
Thankyou4calling said:
ESOG said:
That doesn't surprise me considering the 911 has been essentially unchanged for decades
How on earth can you say that. The 911 has evolved not only with every new generation but virtually every year. To say it is essentially unchanged is plain wrong IMO.
The parts cost (production parts, not post production) list for a well know small german luxury hatchback was £7000 approx (2008 figure)depending on specification (not including the bodywork). Factor in the assembly time and development cost and it leaves a very small margin. Though when you are pushing them out the door at one every 90 seconds it adds up. Consider that if you saved £1.00 per car by reducing the quality of a part or deleting the part, you make an extra quarter of a million every year. Options, even at factory level, are where the money is. To give you an idea....the cost to the factory of an alloy upgrade from 15" to 17" alloys was about £10.00.
3 components basically.
1. building the car, the components. Say 3k - 20k per car.
2. designing and assembling the car. Total cost of the design and factory/number of cars. The more you build the cheaper it gets. Between 1k and 100k.
3.Fixed costs, rates, salary, pension, legal, regulation. 1k to 100k.
Lowest, Honda 50, design amortised over 5,000,000 units, so buttons.
Worst, Bristol, 100 units.
1. building the car, the components. Say 3k - 20k per car.
2. designing and assembling the car. Total cost of the design and factory/number of cars. The more you build the cheaper it gets. Between 1k and 100k.
3.Fixed costs, rates, salary, pension, legal, regulation. 1k to 100k.
Lowest, Honda 50, design amortised over 5,000,000 units, so buttons.
Worst, Bristol, 100 units.
Even with techno wizadry, some one still has to spend the time beating out sheets of metal to make the panels of the prototype car. Weeks spent making it safer. The engine will of been designed on another timescale at some point, that can take weeks, especially for initial molds and cylinder head flow and design.
All this is factored in, not just the material costs.
Then there's getting to the dealer, owning the land for dealer forecourts, refitting them as nessacery, advertising, possible lawsuits/warranty claims/faults.
All this is factored in, not just the material costs.
Then there's getting to the dealer, owning the land for dealer forecourts, refitting them as nessacery, advertising, possible lawsuits/warranty claims/faults.
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