I guess I've been in a cave; new 26 Mustang GT well equipped for 64-67k??!!

[SCP440]

I wonder what it really costs to make these vehicles ? I know there is development etc but what is the true cost with the parts, energy and labour?

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[Bob Lob Law]

Companies are in business to make money. They are not in business to be a charity. I don't understand people upset with a company making "record profits". Labor is the largest cost in production usually. Unions artificially inflate the cost of labor. Being in a union(for 24 years now) they create more problems for themselves to fix and they truly don't care about the employees either.

 

[robvas]

F-150 Raptor R with no additional options/accessories is $115K…

That's $35k short of $150k

A loaded F150 or F250 is still only like 90-110 MSRP (and that's completely maxed out) and you're going to be getting like $15k off of that

 

[Gregs24]

I wonder what it really costs to make these vehicles ? I know there is development etc but what is the true cost with the parts, energy and labour?

Platforms cost billions to develop before they make a single car.

MEB platform cost €6bn and so far have made 3 million vehicles based on it. That is €2000 alone.

 

[HoldenSSVandGT350]

While I generally agree, I understand why a corporation would cite workers' wages as a cost disadvantage when major competitors operate in the US with non union labor. Also, it's not as simple as "everyone makes record profits" when companies like GM need bailouts.

No, GM was crying poor. The bailout occurred in ‘08-09, one and done, money paid back and back to profitability quickly. That was 16 yrs ago at the time of the most recent UAW negotiations where they finally had to return some of the benefits and wage cuts they enacted back then that the UAW actually conceded to.

 

[HoldenSSVandGT350]

Companies are in business to make money. They are not in business to be a charity. I don't understand people upset with a company making "record profits". Labor is the largest cost in production usually. Unions artificially inflate the cost of labor. Being in a union(for 24 years now) they create more problems for themselves to fix and they truly don't care about the employees either.

False, very false. Direct labor accounts for 5-10% of vehicle cost at GM. Materials is, wait for it, 40-60%. I’m sure Ford is right there too. Hence my statements about crying poor about labor costs. Wages aren’t the main issue, it’s tariffs and general material cost inflation. Simple.

 

[Gregs24]

Top automakers by operating margin

Ferrari traditionally by far the most profitable but few others make it anywhere near.

 

[Bob Lob Law]

In automobiles it may be much less percent wise sure. Everything else I said I stand by.

 

[Bob Lob Law]

No, GM was crying poor. The bailout occurred in ‘08-09, one and done, money paid back and back to profitability quickly. That was 16 yrs ago at the time of the most recent UAW negotiations where they finally had to return some of the benefits and wage cuts they enacted back then that the UAW actually conceded to.

"fully repaid" with HUGE taxpayer losses!


Total Government Investment and Recovery

• • Total Disbursed: The U.S. Treasury injected roughly $49.5 billion into GM across 2008 and 2009 during the financial crisis and bankruptcy restructuring. [1, 2]
  • Loan Repayment: GM fully repaid its specific government loans totaling $6.7 billion in cash by April 2010, five years ahead of schedule. [1, 2]
  • Stock and Equity Recovery: The remaining bulk of the federal investment was converted into a 60.8% common equity stake in the restructured company, which the U.S. Treasury gradually sold off, finishing its final share sale in December 2013. [1, 2]
  • Net Cost: Total proceeds from loan repayments, preferred stock repurchases, interest, dividends, and stock sales added up to around $38.3 billion, leaving a final taxpayer loss of $11.2 billion. [1, 2, 3]

 

[MidwayJ]

No, GM was crying poor. The bailout occurred in ‘08-09, one and done, money paid back and back to profitability quickly. That was 16 yrs ago at the time of the most recent UAW negotiations where they finally had to return some of the benefits and wage cuts they enacted back then that the UAW actually conceded to.

GM also went through a bankruptcy process that allowed them to get rid of debt and other obligations. They probably wouldn't have returned to profitability at all without that.

 

[MAGS1]

That's $35k short of $150k

A loaded F150 or F250 is still only like 90-110 MSRP (and that's completely maxed out) and you're going to be getting like $15k off of that

I’m sure with a few other options & accessories you can get closer. I think the point is, $100k trucks are out there which is crazy when you think about the demographic that trucks were originally built for

 

[RobZ71LM7]

Got a co-worker of mine with a $105k F250. He also has an Expedition Max King Ranch 4x4. That's $200k in trucks between him and his wife. I'm keeping my '19 F150 a long time-I'll have no issue putting a transmission in it when the time comes after seeing new truck prices. I'm 43, been a car guy all my life, and maybe it's getting older-BUT seeing this much money in assets that age like milk is making me sick nowadays.

 

[robvas]

I’m sure with a few other options & accessories you can get closer. I think the point is, $100k trucks are out there which is crazy when you think about the demographic that trucks were originally built for

Yea but when people say "F150's are $150k!" they aren't really talking about things like a Raptor R. It's the loaded Platinum/King Ranch trucks.

$90k is nuts though for truck, even a Luxury one. But then you've got stuff like the Escalade V which MSRP at $170k....

 

[Eury]

They’ve been going up for a while. Sticker on my 22 GT was $56k.

 

[robvas]

Wait until they add hybrid and AWD

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