The retail price of vehicle is set by the market in which the vehicle is sold, not based on the cost to build the vehicle. The same vehicle, sold in three different countries will have three different prices. The build cost in the US is only around one third of the MSRP.
General Motors Reports Record Sales Of New Disposable Car
Jun 27, 2009
38 Replies
Only partially true. The cost of the sale always has to be above manufacturing cost or it is unstainable without a lot of bailout and corruption cash from taxpayers. As GMers are discovering, GM is flat as tapped out broke and broken because they know s*1t about economics.
Pricing elasticity above the manufacturing costs assures profits and sustainability.
If pricing falls below what the market will pay, then they should not produce any more which will either allow prices to rise or if no demand exists, the item perishes and you don't loose money. Basic JIT principle. Basic BA and MBA stuff. Companies who practice this basic principle keep their companies from becoming needy-greedy self denial slugs leaching on on the taxpayers arse.
If not Toyota, someone else would. Toyota gets a fraction, very small fraction of what GM stole from taxpayers. And if Japanese want to empty their wallets, I don't care as it isn't my wallet to empty. And I believe Toyota would survive quite well on it's own without governments, including the US and Japan ones.
GM has just screwed Canadians and Americans coast to coast. They are needy-greedy-slugs. I am certian their government lifeline of taxpayers wealth will be cut off, and we will once again see GM bankrupt.
I drive a F150, one of the highest foreign content trucks in it's class. A whopping amount of non-union parts from Mexico.
My next one will be 100% UAW/CAW free. They sold out their fellow workers union and non-union.
Your point?
As are all prices.
The same vehicle, sold
Then how mcome GM can't make a profit?
GM is screwing Americans. For GM's benefit.
Toyota is screwing Japanese. (for our benefit)
GM, gouging consumbers and losing money at the same time.
Mike will fall back on imports or "Japan", not realizing Honda, Toyota and Nissan make cars in the same market that does GM and do so at a profit. And Japan does not subsidize North American operations.
GM is racketeering to defraud the taxpayer.
However the Japanese government subsidize the CORPORATION. The Japs do assemble vehicles the US, using mostly import materials and parts in plants that were built with state taxpayers bonds using employees trained to state schools with taxpayer money, but the fact remains more than half of all the vehicles sold in the US by the Japs are IMPORTED and all of the profits go back to Japan US corporate tax free.
Economics 101, the cost of doing business depends on one economies of scale. The same reason the Jap auto makers are currently losing money, dummy. the market of off 40%
What makes you believe the Mexican auto workers are not unionized? How many of the Jap assembly plant in the US have the benefits of a union?
Except for the Tacoma, made in a union plant, how many parts in a Toyota are made by union workers?
Why does the average Toyota, assembled in the US of "world sourced parts according to Toyota," by workers with far fewer benefits and lower wages than union workers, cost 20% to 30% MORE to drive home from the dealership than domestics brands of the same size and similarly equipped, according to the US Department of Commerce site?
Curious isn't it?
That may be your opinion but GM still sells more vehicle than ANY other brand. Obviously your personal opinion is that of a minority LOL
That may be your opinion but GM still sells more vehicle than ANY other brand. Obviously your personal opinion is that of a minority LOL
Every one at a loss, below cost and subsidised by the taxpayer.
GM, needy, greedy and corrupt. Plenty stupid too.
I will add paranoia to GM Disease description. I say this as you really believe Ford, Toyota, Honda, BMW, Suzuki, Nissan, Fiat, VW and others all ganged up on poor little GM?
I submit GM did it 100% to itself by iteself with 100% incompetance, greed, self denial, corruption, stagnation, unions, appathy and pathetic stupidity.
Sheep have more common sense, they don't try to pull others onto the tracks staring straight at a freight train blowing its horn.
GMers are loosers.
And GM couldn't do that right either. LOL.
No worry, I am getting the next one offshore. I want zero CAW/UAW in the next one.
Actually, you should pull you head out of your arse for this.
Many Toyota vehicle employ and have more NA content than do GMs. Take the Volt, comes to NA in 10 easy pieces. Essentially assembled, but not made here.
Take a cup of reality-juice. You are in dire need of it.
Someone posted the answer earlier;
Sell Price is determined by Demand, not Build Cost.
Toyota did it right with their sedans. Instead of putting effort into fins, chrome, and fluff. they just kept improving reliability.
American consumers are not that stupid. When you're putting down close to $20,000 for a new car, you want reliability.
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Old news but relivant.
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