Fords cost to build a focus?
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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!!
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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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I coulda sworn that car companys don't make much of a profit off of cheap cars?? Its the trucks and expensive cars where the money is made.
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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.
My guess is around 6k.
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Yeah, seriously, the list is more than likely next to endless.
Advertising is spendy too.
Advertising is spendy too.
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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.
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.
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.
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 doubt it...that $6000 estimate was probably a little more accurate. With a high production facility, the cost of the actual product is pretty low. Everything else that people added on goes into the MSRP which is what we pay. They still made money off me buying mine for 11 g's i'm sure.
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don't forget our cars were made in Mexico and thats cheap labor. I would say 6 - 7 k including all the little details and the factory expenses
there is no way it's 6000$
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%.
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%.
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.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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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
Remember, whenever a car is sold, Everyone at Ford eats
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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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.
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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