Model life cycles - Saab 9-3SS Bulletin Board - Saabnet.com
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Model life cycles
Posted by Stephen Goldberger [Email] (more from Stephen Goldberger) on Sat, 30 Jul 2011 04:44:27
In Reply to: I must have gotten really ripped off 8 years ago!, Steve T,, Fri, 29 Jul 2011 12:00:28
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Once the investment is amortized, the cost structure becomes very different. I have been told that actual vehicle cost (not dealer cost but manufacturer's cost structure) is 1/3 engineering and administration, 1/3 purchased materials and components, and 1/3 operating the factory. By now that 1/3 has been either paid for or written off by GM. Plus there was plenty of cost added onto Saab to pay for the privilege of GM's ownership.
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