What Does GM Make on each Camaro sold??

[RAdams]

What Does GM Make on each Camaro sold??

Happy customers!

[nasty2ss]

My brother-inlaw worked for a Cadallac dealership,he says they make their money on service.Make very little on the sale of the car.How much does GM make certainly not enough their bankrupt.:(

[Mr Smith]

Do you deliver? A 3k mile road trip might not fit into my budget..

Originally Posted by little_bank_robber

No offense taken...for the most part

Next time you need to buy a vehicle, come see me or Scotty and I guarantee you'll have a lot better experience.

[AnnaBear@SpartaChevy]

Originally Posted by RAdams

What Does GM Make on each Camaro sold??

Happy customers!

That is the best answer

[THUMPER20X]

I have a friend, used car manager at another Domestic car company. The dealer averages $900 to $3800 depending on price, incentives and a few other factors. They make money on parts and service etc. A 30,000 car would cost you 300,000 dollars to build it part by OEM part from the parts depot. The dealer money is really made on all the extras like admin, paint protect blah blah blah.

[rayhawk]

There is an awful lot of overhead and investment that goes into manufacturing a car. To figure out the money GM makes on a particular car, you have to consider the life expectancy of that car, lets say 5 years, and the total sales, lets say 100,000 per year. Right now they aren't making money on it in the short term, they have to buy all the tooling, set up the plant, and do all the engineering years before they get a penny from any customers. All in all, it probably takes 2-3 years after production begins to pay for all the tooling, etc. So really, they are still in the red on the Camaro. Then when they start making profit, they have to use some of that money to begin working on the next generation of the vehicle.

You could add up how much it costs to physically make the vehicle, and pay the employees at the plant, and buy the materials, and it would look like there is a huge profit margin. But when you consider all the other costs, they probably make $1000-$2000 on the average car, when things are going well (obviously not right now).

[AnnaBear@SpartaChevy]

Originally Posted by Mr Smith

Do you deliver? A 3k mile road trip might not fit into my budget..

Sure! We can deliver it via truck. My buddy 'talwell' set me up with an awesome, reputable shipper. Or have it drop-shipped to a dealer near you. Or if you prefer, (and this is they way I like to do it), just fly into the airport nearby and we'll pick you up. Then, just drive your new car/truck home! That way I get to meet you.

Never got to meet 'talwell' when he bought his Camaro. One of these days though, one of these days! We'll have to run into each other at some Camaro function sooner or later.

[sigma_1966]

I have seen local dealerships advertise that you can make 50 - 100K a year selling cars.

So lets say mid range 75K a year. So if the $300 per car you would have to sell 250 cars a year. With 3 weeks vacation /holidays etc per year you would have to sell 5 cars a week... every week

Originally Posted by CamaroScotty

If there was money in this business, I wouldn't be buying POWERBALL TICKETS to buy MY CAMARO!!!!

[Mr Smith]

Whos piece of pie are you talking about? The Salesman, GM, Finance manager, or owner? They all get some of that.

Originally Posted by sigma_1966

I have seen local dealerships advertise that you can make 50 - 100K a year selling cars.

So lets say mid range 75K a year. So if the $300 per car you would have to sell 250 cars a year. With 3 weeks vacation /holidays etc per year you would have to sell 5 cars a week... every week

[THUMPER20X]

Originally Posted by sigma_1966

I have seen local dealerships advertise that you can make 50 - 100K a year selling cars.

So lets say mid range 75K a year. So if the $300 per car you would have to sell 250 cars a year. With 3 weeks vacation /holidays etc per year you would have to sell 5 cars a week... every week

I sell 3-4 a week and pull 5-700 net out of them. $2000=$4000 cars and some buy here pay here deals.

[rtcage]

So the real question is what are variable production costs (labor and materials) for each Camaro sold. While I'd love to know, I bet only senior operations and corporate folks know the answer to that. Forget about the investment needed for R&D and the production facility. If you factor those in, they wont be profitable on the Camaro for a while. As for the dealer profit, that shouldn't be too hard to figure out. For their sake I hope it's a good profit. I get depressed every time I drive by ghost-town dealers these days.

[AnnaBear@SpartaChevy]

About three years ago I read that GM spends more on health care costs than they do on steel.

Think about that for a minute!! Wow...

[sigma_1966]

Salesman. Scotty below said he makes $300 on a corvette

Originally Posted by Mr Smith

Whos piece of pie are you talking about? The Salesman, GM, Finance manager, or owner? They all get some of that.

[Number 3]

Originally Posted by 67 Convertible

I know if the dealer sells for msrp they make $2k or less. I think on my car it was about $1,700.

But how much does GM corporate make per car?? The sticker on my car was $31.800. Does anyone know what it cost GM to actually make this car? I mean the actual profit after overhead, labor and parts. Do you think they bottom line $10k per car? More? Less?
Just curious....

10K is wayyyyyy off. There is a lot of accounting going on relative to investment, overhead etc. The basics start with the basic costs - material and labor. You start adding on top for engineering and amortized investment costs on top of that.

Originally Posted by madmaxx18

A couple grand and I higly doubt the dealer makes 2 grand unless they sell it at invoice.

Do you mean invoice or MSRP? Invoice is what GM gets paid for the car....less some costs etc. that I can't quote.

Originally Posted by 67 Convertible

Maybe I should re-phrase my question. The Camaro is a new car and it cost GM hundres of thousands of dollars just to set up the plant for production. It will probably be a looong time before they make any money on the Camaro.

So let me ask about an already established model....Impala? Malibu? etc. What is the average clear profit GM makes per car?

That would be millions. And sorry, won't tell you specifics, but it clearly depends on the car. Big difference between a Cobalt and an Impala for example and both are high volume cars.

Originally Posted by talwell

One thing to remember is that GM spent hundreds of millions of dollars just building the plant in Oshawa to build these cars. Not only this, but I am sure they spent over $100 million to develop, engineer, test and build just this single model. So with that in mind - I am sure that any profit that is seen by GM is factored out based on forward facing sales figures. Initially and for long to come I am sure that the actual realized profit is $0.00 per car.

Thanks for correcting that.

Originally Posted by CamaroScotty

I'm certainly not in it for the money....My I.T. job paid 3X as much - but it went to India...

But it IS stress free, and I enjoy it....and I love the vette and camaro - so I am living a SECOND childhood. I love the reaction of people picking up their Camaro's, and making friends in MANY of the states in the USA!

Yea, I know, I'm not normal!!!

Good for you, Scotty. It is good to love your job. That alone can make up for salary..........................sometimes.

Originally Posted by CloudXTC

have a friend who works for infinity headoffice in Mississauga ontario - on an infinity g37... the price is around 45k canadian i believe.... but it actually costed around 17k to produce...

i dont know how exact this is but he was giving 'round' figures

That would be ball park for the parts and labor. Not even close when you factor in the investment dollars.

Originally Posted by RAdams

What Does GM Make on each Camaro sold??

Happy customers!

Best answer

Originally Posted by rtcage

So the real question is what are variable production costs (labor and materials) for each Camaro sold. While I'd love to know, I bet only senior operations and corporate folks know the answer to that. Forget about the investment needed for R&D and the production facility. If you factor those in, they wont be profitable on the Camaro for a while. As for the dealer profit, that shouldn't be too hard to figure out. For their sake I hope it's a good profit. I get depressed every time I drive by ghost-town dealers these days.

Reasonable thoughts there.

But to the OP, if GM made $10,000 per car x 100,000 Camaros (likely for 2010 MY) that would be $1,000,000,000 right there. And keep in mind GM NA operations hasn't really made that much all in for much of the last 10 years.