View Single Post
Old 02-02-2010, 07:57 PM   #23 (permalink)
cfg83's Avatar
Join Date: Dec 2007
Location: Southern California
Posts: 5,864

1999 Saturn SW2 - '99 Saturn SW2 Wagon
Team Saturn
90 day: 40.49 mpg (US)
Thanks: 439
Thanked 528 Times in 355 Posts
Old Tele man -

(I think luvit beat me to it)

Originally Posted by Old Tele man View Post's simple automotive economics (damn bean counters):

* 15% of $1 cable = 15˘

* 15% of $10 plastic assembly = $1.50

...remember, it's profit to them, not necessarily cost to you, that rules!
Are you trying to say they make the more expensive part and pass the cost on to the consumer? From a UMC (unit manufacturing cost) POV, I don't think that would fly. Instead I think they would make the cheaper part and pass the cost of the more expensive part on to the consumer. In some instances, that's what they did when 3rd party vendors moved manufacturing from the USA to Mexico. The cost to *produce* a steering wheel in the the maquiladora would go down, but the charge to the auto company that assembles the steering wheel into the car would be the same or slightly less. In that case the 3rd party vendor pockets the difference, but the consumer pays the same.


What's your EPA MPG? Go Here and find out!
American Solar Energy Society
  Reply With Quote