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What do ya think it cost Ford to build a focus? We pay 12-17k for these things there has to be decent profit.
 

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Lets just say not much. It doesnt cost any car companies much to build any of their cars when you figure in how many people are buying them and so forth. We discussed this in my Automotive Aftermarket class, and my proffesor said that he would tell about how much it cost a company like Ford to build a car, but then he would have to kill us!!
I will get it out of him before I graduate, so I can use it against the next salesman I haggle with.
 

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It would be next to impossible to figure out very accurately. There's shipping, parts, labor, electricity to run all the facilities involved etc...

My guess is around 6k.
 

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It would be next to impossible to figure out very accurately. There's shipping, parts, labor, electricity to run all the facilities involved etc...

My guess is around 6k.
Don't forget engineering, tooling up for production, testing, training, etc.
 

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Look at it this way, Ford makes a profit from the dealership, the dealership makes a profit from you.

Some, but not all:

There are actual costs of production - wages (salaries/hourly, taxes, less: wage tax credits, if any) employee insurance (health, unemployment), deminimus (employee), holding costs (interest, etc.), plant-direct & indirect costs (building, equipment, less: depreciation/amortization, overhead allocated - utilities), non-production employee costs at the respective production plant (wages, taxes, insurance, etc. as similar to production), corporate costs - salaries, overhead, advertising, marketing, etc., a built-in profit factor, etc., then a profit once all "costs" are covered.

Then you get to the dealership - cost of car plus: the dealer's costs: base wages, insurances, deminimus, holding costs, overhead, owner's and non-sales salaries (support staff, etc.), depreciation, improvements, future projects, etc., sales bonus (variable), then a profit once all "costs" are covered.

You can't simply say "what did the car cost and what am I being charged" is the profit?

This is why there is a "cost" because you have to cover a lot of "other" items to get the sale to go through, for the most part.
 

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Ford knows how much it costs to build every car it makes. There are alot of variables but they do know.

I bet the competition knows too.

My guess for the base cost of the focus is 11,000-12,000$.
 

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I don't know about the Focus, but I had a buddy that worked for Chrysler when I bought my fully loaded 98 Dakota. I paid 20,000 for it at the dealership, and when he looked up the total cost of my truck it was in the 9000 range.

I'd guess the focus was around that range and Id think the SVT cost a bit more due to the lower volumes.
 

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I remember hearing one time that ford actually lost money on the escorts! Don't know if it was true or not???
 

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Ford knows how much it costs to build every car it makes. There are alot of variables but they do know.

I bet the competition knows too.

My guess for the base cost of the focus is 11,000-12,000$.
I doubt it...that $6000 estimate was probably a little more accurate. With a high production facility, the cost of the actual product is pretty low. Everything else that people added on goes into the MSRP which is what we pay. They still made money off me buying mine for 11 g's i'm sure.
 

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there is no way it's 6000$

wheels, tires, engines, transmission, air bags, a plants worth of tooling, property taxes, 25$per hour workers, ECU, seats, radios, buttons, fuel tanks, struts, shocks, springs, paint, paint shop, couple hundred pounds of steel, bearing, bushings, and steering rack, pump pulleys, windsheild, side windows, emmissions equipment( o2 sensors, Cataylst, and ETC) lug nuts' studs, brakes, steering colum, carpet, fuel pump, fuel lines, alternator, etc.

Even it did cost 6000, that would leave 6-12000$ of profit on every focus. Ford loss 559 million dollars in 2002, on revenues of 94.1billion dollars. Ford spends 75-85 billion on parts for the cars it makes.

The engine and transmission alone are worth >2200 not counting the wiring harnesses, shift linkages and engine assesories.

modern cars are very complex, complex = expensive.

The average margin in the automotive industry in <3%. only 3%.
 

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Lets just say not much. It doesnt cost any car companies much to build any of their cars when you figure in how many people are buying them and so forth. We discussed this in my Automotive Aftermarket class, and my proffesor said that he would tell about how much it cost a company like Ford to build a car, but then he would have to kill us!!
I will get it out of him before I graduate, so I can use it against the next salesman I haggle with.
This quite possibly may be the dumbest thing I have ever read on here. What the cost to build is has very little bearing on what the dealership owns it for. So haggle all you want it will do you very little good trying to use that logic.
 

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there is no way it's 6000$

wheels, tires, engines, transmission, air bags, a plants worth of tooling, property taxes, 25$per hour workers, ECU, seats, radios, buttons, fuel tanks, struts, shocks, springs, paint, paint shop, couple hundred pounds of steel, bearing, bushings, and steering rack, pump pulleys, windsheild, side windows, emmissions equipment( o2 sensors, Cataylst, and ETC) lug nuts' studs, brakes, steering colum, carpet, fuel pump, fuel lines, alternator, etc.

Even it did cost 6000, that would leave 6-12000$ of profit on every focus. Ford loss 559 million dollars in 2002, on revenues of 94.1billion dollars. Ford spends 75-85 billion on parts for the cars it makes.

The engine and transmission alone are worth >2200 not counting the wiring harnesses, shift linkages and engine assesories.

modern cars are very complex, complex = expensive.

The average margin in the automotive industry in <3%. only 3%.
I was talking about the raw cost of the components on the car. Nothing else. Then engine and transmission costs less than that for ford to get i bet...
 

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It would really hard for me to believe that it cost more than 5k to build most cars at Ford. The actual overall cost for materials has not really changed. Executive pockets are just alot fater and thus, the high prices that we pay.
Remember, whenever a car is sold, Everyone at Ford eats
 

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there is no way it's 6000$

wheels, tires, engines, transmission, air bags, a plants worth of tooling, property taxes, 25$per hour workers, ECU, seats, radios, buttons, fuel tanks, struts, shocks, springs, paint, paint shop, couple hundred pounds of steel, bearing, bushings, and steering rack, pump pulleys, windsheild, side windows, emmissions equipment( o2 sensors, Cataylst, and ETC) lug nuts' studs, brakes, steering colum, carpet, fuel pump, fuel lines, alternator, etc.

Even it did cost 6000, that would leave 6-12000$ of profit on every focus. Ford loss 559 million dollars in 2002, on revenues of 94.1billion dollars. Ford spends 75-85 billion on parts for the cars it makes.

The engine and transmission alone are worth >2200 not counting the wiring harnesses, shift linkages and engine assesories.

modern cars are very complex, complex = expensive.

The average margin in the automotive industry in <3%. only 3%.
I was talking about the raw cost of the components on the car. Nothing else. Then engine and transmission costs less than that for ford to get i bet...
No the cost I list are Ford costs. ford a Duratec and MTX not the more expensive ATX.

all of you are missing the point complexity is expensive. Cars are complex.the more complex the higher the development costs, higher development costs the longer it take to pay off. also Development costs aren't paid in cash, but on credit. the interest has to be paid on the loans and the longer it takes to pay the more interest you will pay.

Famous cars that didn't make money:

coutour
Cougar
cavilier

why are computer chip expensive to make? The cost a Chip FAB is >1 billion dollars. about the same cost of a auto plant, and add to that the fact that They need to be retooled every 18months vs 5years for the auto industry.

understand the deeper complexity, that there thousands of steps taken to build one car. As practice all of you who think the Focus cost only 6000$ to make, take your car apart, or just one door, and count and catalog each part in the door, and estimate the cost of each part no mater how small. lookup the cost of the materials by weight. you will get a good idea of how much the material cost of the door is, but not the tooling costs, or development cost.

the margins are so small because of competition, in every level of the supply system. if you can make a part cheaper than everyone else you control the market. everything from seats to axles, wheeels, and lug nuts. if ford's costs were so much lower than everyone else and why wouldn't they lower the price of the Focus? 2003 focus sales are down Vs the 2001, why would ford not try to move more cars to make more money?
 

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i don;t know what ford's profit is for a focus, but i do know that ford makes $8000 for every expedition it sells and $10000 for every navigator. as for the f series trucks, the profit can range anywhere from $8000 to $15000 depending on the model. that's a pretty insane amount, considering the sheer volume of these particular vehicles sold. i'll try to find out about ford's profit on the focus when i return to work, but i seriously doubt it is alot.
 

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i don;t know what ford's profit is for a focus, but i do know that ford makes $8000 for every expedition it sells and $10000 for every navigator. as for the f series trucks, the profit can range anywhere from $8000 to $15000 depending on the model. that's a pretty insane amount, considering the sheer volume of these particular vehicles sold. i'll try to find out about ford's profit on the focus when i return to work, but i seriously doubt it is alot.
the assembly of large car isn't much more complex than a small car. The actual content costs are higher. the market limits how much can be made on each vehicle and that in turn determines the cost of the vehicle.
 

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There is more than profit involved. Yes Ford buys parts and labor from outside the US. Its way cheaper. No Unions, no SS taxes, lower income taxes, less employee benefits, to mention a few.

There is also the corporate fuel economy average. For every couple Foci Ford sells, they can sell a gas hog or two and not be penilized by the feds.

I got $3750 in rebates on my 03 ZX3, Ford isnt selling cars to lose money, they are in business to make money, so there is still profit from each car sold.

The automakers lose money because they dont sell enough cars, not because they lose money on the ones they sell.
 
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