What Does GM Make on each Camaro sold??

[Number 3]

Originally Posted by cliffy

Annnnnnnnndd why would you necessarily trust a Union Rep to give you the straight dope on actual cost. They are always going to paint a skewed picture of how much the MAN is making.

Truth be told, inefficency and outright blunders of management and labor has a bearing on profitability. GM was firing on all cylinders in the 60's and 70's, they really lost their way in the 80's and 90's with turds like the Vega, Chevette, Citation, and Berretta. All were reactions to what they thought people wanted after the Oil Embargo. Truth is people just want something that looks good (the number 1 priority BTW), is within their budget as far as consumption and is reliable.

Originally Posted by Blitz63

This wasn't just the local Shop Steward...this was the rep for the whole local plant. I know the man well ! He tells it like it is....good and bad ! My point is he credable(sp) and when he did tell me I wasn't asking, just talking with him as we were working on one of his vehicles.

As I tried to post earlier, there is the cost of material and labor to build a car and I really don't want to go into that, but it is far less than the TOTAl cost.

What you have to consider is the engineering costs, the cost of prototypes built to develop the car, the cost to build the dies to stamp the panels, the cost of tools and factories at each supplier making parts to ship to Oshawa and the cost of each of those supplier to engineer and develop those products. The cost of the energy to run the plants.

Lets say you go into the picnic table business. Each table you build has $100 of lumber and $10 in hardware (nuts and bolts). And it takes you 8 hours to make each picnic table. And lets further supose you pay yourself the $15 per hour for your labor. So if you go sell that picnic table.

Lumber 100
hardware 10
Labor 120

Total 230

So if you sell that table for 230 you are paying for your labor as profit of $120

Now lets assume you have to make a lot of picnic table so you hire 10 people to do the work for you. But you still want to make a profit yourself on your business. So you have to add your profit on to of each table you sell. So lets say in order for you to even be in business you want to make $50,000 per year.

Lets further suggest that to make many picnic tables you need a bigger building or shop so you have buy or rent that. Let's assume that your new shop costs you $25,000 per year.

So now you have 75,000 in over head you have to pay for out of each picnic table. And if your 10 guys can buid 10 tables per day, the same rate you did on your own (1 per 8 hours), that's 2,500 table per year or an additional $30 per table to have a good business.

Oh and to keep up, keep your costs down and quality up, you need to buy some tools to cut lumber and assure that all of your bolts are properly tightened. So lets say you have to invest another $25,000 in tools to maintain your market position. That is another $10 per table you have to get back to have a good business.

Ohhhhhh and then there are the taxes on the building and tools. And your shipping costs for each table because you are now big and you are shipping them to stores rather than out of your garage. And you need advertise to keep sales up to keep you people working full time. And then you will need an accountant to help with the taxes and payroll etc...

It goes on and on.

So the table may cost you $230 to make, but it isn't the total cost of the table relative to your business. And if you sold it for what it cost you to make it you would just have an expensive picnic table making hobby.

[cliffy]

Originally Posted by Number 3

As I tried to post earlier, there is the cost of material and labor to build a car and I really don't want to go into that, but it is far less than the TOTAl cost.

What you have to consider is the engineering costs, the cost of prototypes built to develop the car, the cost to build the dies to stamp the panels, the cost of tools and factories at each supplier making parts to ship to Oshawa and the cost of each of those supplier to engineer and develop those products. The cost of the energy to run the plants.

Lets say you go into the picnic table business. Each table you build has $100 of lumber and $10 in hardware (nuts and bolts). And it takes you 8 hours to make each picnic table. And lets further supose you pay yourself the $15 per hour for your labor. So if you go sell that picnic table.

Lumber 100
hardware 10
Labor 120

Total 230

So if you sell that table for 230 you are paying for your labor as profit of $120

Now lets assume you have to make a lot of picnic table so you hire 10 people to do the work for you. But you still want to make a profit yourself on your business. So you have to add your profit on to of each table you sell. So lets say in order for you to even be in business you want to make $50,000 per year.

Lets further suggest that to make many picnic tables you need a bigger building or shop so you have buy or rent that. Let's assume that your new shop costs you $25,000 per year.

So now you have 75,000 in over head you have to pay for out of each picnic table. And if your 10 guys can buid 10 tables per day, the same rate you did on your own (1 per 8 hours), that's 2,500 table per year or an additional $30 per table to have a good business.

Oh and to keep up, keep your costs down and quality up, you need to buy some tools to cut lumber and assure that all of your bolts are properly tightened. So lets say you have to invest another $25,000 in tools to maintain your market position. That is another $10 per table you have to get back to have a good business.

Ohhhhhh and then there are the taxes on the building and tools. And your shipping costs for each table because you are now big and you are shipping them to stores rather than out of your garage. And you need advertise to keep sales up to keep you people working full time. And then you will need an accountant to help with the taxes and payroll etc...

It goes on and on.

So the table may cost you $230 to make, but it isn't the total cost of the table relative to your business. And if you sold it for what it cost you to make it you would just have an expensive picnic table making hobby.

Fully understand........there are many more things to consider. I know it well, in business myself. Thats something the guy on the line never figures

It is dizzying to even think how much it cost GM the make the set of dies to stamp the right and left rear quarters. I read somewhere it was one of the deepest draws on a piece of metal in automotive history

[orosa_83]

Most of the money is made on Financing, Add-ons and Service. When I got my Camry I was finance by Toyota, so they were making money on every payment. I service my car there every 3 months, and bought a couple of TDR parts. They might not make a lot of money on front, but they are making plenty of money down the stretch.

[MightyT]

Originally Posted by orosa_83

Most of the money is made on Financing, Add-ons and Service. When I got my Camry I was finance by Toyota, so they were making money on every payment. I service my car there every 3 months, and bought a couple of TDR parts. They might not make a lot of money on front, but they are making plenty of money down the stretch.

Good point ... Kinda like printer companies ... a good printer is cheap these days, "but" it's the ink that gets you! I figure if my printer breaks I'll just buy a new one ...

Hey, there ya go, avoid service all together, if it breaks save ont ehservice costs ... just get a new Camaro!!!

[isabelle13]

Well in Conway, Arkansas, they marked them up $6,000 over MSRP. I looked at that and told the general manager that he should be ashamed to try to gouge me like that when as a taxpayer I helped bail them out to the tune of 10 billion, billion with a B. He said people were lined up to buy these. I looked around the pty showroom and laughed. I went out and bought a Civic SI. Sell it to some other schmuck

[ffrcobra_65]

thread stuck on spin cycle

[Crider]

So, How much credit is this Accounting/economics class getting me? And can i trade this in as GM points?

[formare]

In 2010 8.3million automobiles were sold by GM

In 2010 gm made 4.8B in profit.


My fancy math says... $578 per vehicle sold. Keep in mind- Most well run small business would want the after tax profit to be as near zero as possible.

[Blue Demon]

I seem to remember hearing Bob Lutz saying that GM made around 8K on a fully loaded 2SS.

[LOWDOWN]

What does GM make?

Hopefully, they make "someone happy"...

[kiteman]

i can tell you that if GM only made $2,000 per $35,000 car, that would be a profit of 5.7% before taxes, which is extremely low. i work in finance and i think the industry standard on earnings before taxes on any item is probably somewhere between 10-15%, so i would hope GM is making at least $5,000 per $35,000 car. ~$10,000 per ZL1, so on and so forth.

dealerships are another story.

[sscamaro]

The invoice price you see on Kelly Blue Book is not the price the dealer pays for the car. The dealer also gets a "Hold Back" from GM for every car sold. They don't tell you that.

[Neriah]

Jeesh way to Ressurect this thread!!

[sprtplt]

Whoever said $8k to $12k is probably dead on. As far as what GM has spent to produce the car, that is not really relevant. The cost of a factory or tooling is paid through debt servicing. And GM has had tens of billions in debt magically dealt with by the U.S. and Canadian taxpayers.