Quote:
Originally Posted by DGthe3
Also, the idea that the tooling is 'paid off' on old cars is BS to me. Development costs and tooling are one time deals. You pay for it before you start building, with money you made from selling other cars. Not by transferring any and all profits from a new car sold into the 'tooling debt' for each individual model, until such time as the tooling is paid for and then you get to pocket the money as profit. I mean, does that not sound insane if you are a century old automaker that has to buy multiple sets of tooling each and every year and have a revenue of many, many, billions of dollars to do it with?
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So you are saying Dodge is paying as much for tooling and R&D as GM did for the 6th gen when Dodge is using the same chassis, some body parts and components for almost a decade? Tooling and R&D costs are a constant in the business. The scope and scale of those are not.
That's the point I was making, we don't know where their profit margins are. They maybe saving a bunch of money by pumping out fleet sales over losing money with a plant idling. In the end, profit margin is all that matters. ATP and % of fleet sales both mean nothing without knowing the margins.
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Current: '17 2SS Hyper Blue, A8, MRC, NPP
Past: '99 SS Camaro A4, '73 Camaro 383 A3
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3800 Status - 6/16/16 (Built!)
6000 status - 6/29/16 (Delivered!)