![]() |
|
Welcome to the Australian Ford Forums forum. You are currently viewing our boards as a guest which gives you limited access to view most discussions and inserts advertising. By joining our free community you will have access to post topics, communicate privately with other members, respond to polls, upload content and access many other special features without post based advertising banners. Registration is simple and absolutely free so please, join our community today! If you have any problems with the registration process or your account login, please contact us. Please Note: All new registrations go through a manual approval queue to keep spammers out. This is checked twice each day so there will be a delay before your registration is activated. |
|
The Pub For General Automotive Related Talk |
![]() |
|
Thread Tools | Display Modes |
![]() |
#1 | ||
Regular Member
Join Date: Apr 2010
Posts: 211
|
Hello all,
I'm hoping someone who is more in the know in the car industry then I what sort of profit margin car companies (such as Ford) aim to make on each car they sell. So this would be the difference between what it costs to build the car and the cost they sell it to the dealers at. Thanks for any information you can provide ![]()
__________________
BF 06 FALCON XR6 |
||
![]() |
![]() ![]() |
![]() |
#2 | ||
FF.Com.Au Hardcore
Join Date: May 2006
Location: Sydney
Posts: 1,868
|
That is one of the most closely guarded secrets in the car game .
__________________
Chevy badges , the Polariser of the new millenia . |
||
![]() |
![]() ![]() |
![]() |
#3 | ||
VFII SS UTE
Join Date: Apr 2007
Location: Central Coast
Posts: 6,353
|
around 18,000 dollars for a commo.
thats line, paint, wages, factory overheads.. a V6 or V8 simply means higher margin.
__________________
I don't often hear the sound of a screaming LSX. But when I do, So do the neighbours.. GO SOUTHS
|
||
![]() |
![]() ![]() |
![]() |
#4 | ||
FF.Com.Au Hardcore
Join Date: Aug 2005
Location: Melb.
Posts: 4,439
|
You would also need to add the R&D costs in devoloping the model, which is dependant on how it's amortised, warranty "allowance" per unit, sales & marketing and shipping.
|
||
![]() |
![]() ![]() |
![]() |
#5 | ||
FF.Com.Au Hardcore
Join Date: Feb 2005
Location: Melb north
Posts: 12,025
|
|
||
![]() |
![]() ![]() |
![]() |
#6 | ||
FF.Com.Au Hardcore
Join Date: Aug 2005
Location: Melb.
Posts: 4,439
|
|
||
![]() |
![]() ![]() |
![]() |
#7 | ||
FF.Com.Au Hardcore
Join Date: Jan 2008
Location: Mornington
Posts: 2,135
|
and I would like tonights tattslotto numbers. I think I would have a better chance than the OP.
GT450 |
||
![]() |
![]() ![]() |
2 users like this post: |
![]() |
#8 | ||
FF.Com.Au Hardcore
Join Date: Feb 2005
Location: Melb north
Posts: 12,025
|
|
||
![]() |
![]() ![]() |
![]() |
#9 | ||
dipstick
Join Date: Apr 2005
Location: sutherland shire
Posts: 478
|
i read that holden spent over a billion dollars developing the ve commodore.
|
||
![]() |
![]() ![]() |
![]() |
#10 | |||
VFII SS UTE
Join Date: Apr 2007
Location: Central Coast
Posts: 6,353
|
Quote:
$12,000 on the condition never to be rego'd..
__________________
I don't often hear the sound of a screaming LSX. But when I do, So do the neighbours.. GO SOUTHS
|
|||
![]() |
![]() ![]() |
![]() |
#11 | ||
FF.Com.Au Hardcore
Join Date: Feb 2005
Location: Melb north
Posts: 12,025
|
|
||
![]() |
![]() ![]() |
![]() |
#12 | ||
Regular Member
Join Date: Apr 2010
Posts: 211
|
Thanks for the information burnz, very helpful as a starting point. You have to also add in dealer profit so when you think about it makes sense on a XR6 selling for 32k during sales.
__________________
BF 06 FALCON XR6 |
||
![]() |
![]() ![]() |
![]() |
#13 | ||
FF.Com.Au Hardcore
Join Date: May 2006
Location: Sydney
Posts: 1,868
|
You would be staggered if you saw just how little a dealer makes on a new car .
__________________
Chevy badges , the Polariser of the new millenia . |
||
![]() |
![]() ![]() |
![]() |
#14 | ||
Regular Member
Join Date: Dec 2008
Posts: 297
|
4 to 5% profit on the retail price.
__________________
217.443mph on the Salt..Lake Gairdner |
||
![]() |
![]() ![]() |
![]() |
#15 | ||
FF.Com.Au Hardcore
Join Date: Feb 2011
Location: On The Footplate.
Posts: 5,086
|
Wouldn't R&D be a cost that would be tax deductable in some way, a cost of doing business?
It is a closely guarded secret alright, and has been for many many years. Wheels magazine and Motor have done reports over decades and tried to work out how much a car costs to make but it's very closed-lip stuff. Spare parts are easier to work out a margin on...I believe it might have been the RACQ who once did a study back in the late seventies taking a popular family car, a Kingswood, and picked the most common model. The price was about $7000 off the showroom floor for the car itself on the road, but if you went in and purchased all the spare parts to make the car from the dealer (even a body shell as you used to be able to buy from the manufacturer), it cost something like more than twenty grand, and then you had to get it put together! ![]() |
||
![]() |
![]() ![]() |
![]() |
#16 | |||
FF.Com.Au Hardcore
Join Date: Mar 2006
Posts: 2,021
|
Around 18 to 20k per unit to build a new Falcon. That is raw materials, labour, etc. Then you have the costs to run a factory i.e maintenance crews, workcover premiums, transport, HR, Salary team, etc. These are all INDIRECT costs and need to come out of the "profit" per se.
__________________
Quote:
|
|||
![]() |
![]() ![]() |
![]() |
#17 | ||
Regular Member
Join Date: Dec 2006
Posts: 50
|
If Ford (global) sold 2.2 million cars in 2012 and they made 8.8 billion in profit, then my maths tells me they made on average $4000.00 per car.
This, however, is an average. Profit margin in the US would be higher. So as an uneducated guess I would say they'd aim to make a couple of grand for a Fiesta but maybe $8k for an F150??? |
||
![]() |
![]() ![]() |
![]() |
#18 | |||
GT
Join Date: Apr 2005
Location: SYDNEY
Posts: 9,205
|
Quote:
i would imagine the $18000 for an fg XT , would be including profit , and all the previous costs already raised , like amortisation , design materials etc . out of profit made some of it would have to go towards invesment of new designs etc . so i would think that the $18000 would cover all of the above . and maybe more for and xr6 , but an xr6 would only cost a little more to make , therefore a bigger prifit margin as you go up spec . I'M ONLY ASSUMING BUT THAT HOW I WOULD IMAGINE IT TO BE . |
|||
![]() |
![]() ![]() |
![]() |
#19 | |||
FF.Com.Au Hardcore
Join Date: Mar 2006
Posts: 2,021
|
It is 18k just in DIRECT costs, R&D and all other costs are not included.
__________________
Quote:
|
|||
![]() |
![]() ![]() |
![]() |
#20 | ||
GT
Join Date: Apr 2005
Location: SYDNEY
Posts: 9,205
|
|
||
![]() |
![]() ![]() |
![]() |
#21 | |||
FF.Com.Au Hardcore
Join Date: Mar 2006
Posts: 2,021
|
If the dealers are to be believed, they claim they only make 5% profit on each car they sell.
__________________
Quote:
|
|||
![]() |
![]() ![]() |
![]() |
#22 | ||
Banned
Join Date: Feb 2010
Posts: 5,801
|
Yeap, I had a look at Ford's global result the other day in the states and it appears that net profit as a percentage of gross sales is in that range on a global basis.
Funnily enough many airlines would be over the moon to have a net profit percentage that high. |
||
![]() |
![]() ![]() |
![]() |
#23 | ||
Regular Member
Join Date: Dec 2008
Posts: 297
|
Ford Credit props up FORD...people here are making statements based on
![]() Just go thru their Annual Report
__________________
217.443mph on the Salt..Lake Gairdner |
||
![]() |
![]() ![]() |