Stern: Cost to make a machine

(Topic ID: 155483)

Stern: Cost to make a machine


By newpinbin

2 years ago



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  • Latest reply 10 months ago by newpinbin
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    #69 2 years ago
    Quoted from GreenMachine19:

    I used to be a maintenance technician at a third party automotive manufacturing facility. We sold fuel pump assemblies to Chrysler for new Dodge Durangos, Neons, etc. our contract with them stated that for every vehicle that came off the line and did not start because of our fuel pump assemblies, we would be fined the price of the vehicle to make. Durango was 8000.00 at the time. I believe they were selling for between 30,000 and 40,000 depending on options etc. The Neon was about 2000 or 3000 and were selling for 13000. This was about 15 years ago but the model is probably the same.

    I can tell you these amounts are not accurate. Car manufacturers have to be pretty competitive with pricing among each other. Perhaps your quotes were simply raw material totals (ie not including any labor, R&D to design and make the car, tooling up, or any other costs), a percentage total, or something to that affect. The only thing I can tell you is that a Durango that sold for $30k was never manufactured for $8k. If those margins were true, no car manufacturers would ever be in danger of going out of business.

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