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Originally Posted by duncan
It really does not matter what a car can be "made for" the price is determined by what it can be sold for
There is no linkage between the two
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No?
The Art of Underengineering
Quote:
On average, 70 percent of the cost of any new product is fixed by the specifications and design. In other words, more than two-thirds of the total cost is designed into the product. By identifying what is integral to an automobile’s appeal and what is an expensive waste, manufacturers can modify the product design to dramatically reduce unit costs and give consumers the products they want at competitive prices.
In practice, realizing savings through design is extremely challenging. Most cost-reduction initiatives that attack the design process don’t stick, no matter whether the ideas come from a “value analysis” (taking out cost without compromising value) of an existing product or a “value engineering” approach to designing a new product. Resistance to new ideas also keeps design changes from being implemented.
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Only 30% of vehicle cost is not related to the design and production.
All the housing, staffing, shipping and marketing costs still have to come off that 30%.
The possible profit margin is not that big.
When you have to design and engineer parts for a car you have to take the cost for that in account, not just the bare assembly cost of that part.
When it comes to standardized parts that get used in millions of cars, the design and engineering costs per unit will have dwindled.
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2011 Honda Insight + HID, LEDs, tiny PV panel, extra brake pad return springs, neutral wheel alignment, 44/42 PSI (air), PHEV light (inop), tightened wheel nut.
  lifetime FE over 0.2 Gigameter or 0.13 Megamile.
For confirmation go to people just like you.
For education go to people unlike yourself.
Last edited by RedDevil; 03-11-2015 at 06:13 AM..
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