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No Need to Worry
Posted by Tim (more from Tim) on Sat, 9 Oct 2010 17:02:04
In Reply to: Re: That's MSRP, DE [Profile/Gallery]
, Sat, 9 Oct 2010 16:33:29
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"Saab losing money" was the result of an accounting fiction that transferred GM R&D cost to Saab division in order to lower tax liability in Sweden, which had a higher tax rate.
If GM can sell a car based on the Epsilon I/II platform in the mid-$20k, even $18k to rental fleets, it's absurd to postulate that adding some fine leather, wood, gadgetry and tuning the suspension parts, all in a serial production car, can raise the per unit cost of production by more than 50%. The real issue is how Saab markets itself to retain the perceived premium with suitable amount of premium content without driving people away with overly premium price. Lexus is extremely profitable with its mainstream ES and RX lines. BMW's high cost is in platform engineering, which is why the company has consolidated what used to be three car platforms to two: with 1 and 3 sharing a platform, 5 and 7 sharing another.
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