With the use of robotics, should cars cost so much to produce?

[SaabJohan]

The automotive business is one of the hardest business with the smallest margins. Every year the car manufacturerers expect a cost cut of all their suppliers, if the car manufacturers demands aren't fulfilled they simply goes to another supplier that can fulfill their demands.

When one buys a new car the money goes basicly to three things; manufacturing, development and sales cost (the salepersons percentage, commercial and so on). For some cars there are now a small amount of money left, but this isn't much, and in some cases the cars cost more to produce than what they cost to buy.

But cars isn't the only income for a car manufacturers. A lot of money can made on spare parts, spare parts cost several times as much as the carparts when one buys a new car. So one can se that it's very important for the car manufacturers to sell originalparts.

[454Casull]

Originally posted by Psman32@af
i agree with jay. For the most part, when americans design a new car, we must get a new chasis, body engine, and most of the drivetrain, suspension etc., while for the most part, japenses companies use the same chasis and suspenion but just refine it to their purposes. Also Ford makes more on SUV's than any other car. I believe they make 8000 per explorer bout only 1000 or so on a focus. most of teh profits come from fianacing, which is why no one is making anymoney this quater, because they all offered 0.0% finanacing.

I don't know about that, domestic brands are well known for their badge engineering. And they have to offer 0% otherwise nobody would buy their cars.