Quote:
Originally Posted by camaro5
Not assumptions, research-based information:
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Missing one key point................how much profit.
All of those things lead to higher ATP (eliminated with the 20% tag), which can be awesome. And yes, selling more SSs with more content always helps.
As we've discussed countless times, we don't know GM's total investment, piece cost or labor to determine the price of each Camaro. Further we don't know the Contribution Margin on the Camaro, meaning how much of GM's overhead does the Camaro get to help pay (pensions, healthcare, etc.), so we have no idea how many Camaros GM needs to sell to be profitable.
Whenever you run a business case, you have to know the total costs to develop the product and then you can figure out how many you need to sell at what price to make money.
If it costs $100,000,000 to develop the Camaro and GM sells one to Rick Hendrick for $100,001,000, I made $1,000. Now the question is would you invest $100,000,000 to make $1,000? No you wouldn't.
So unless you have that level of detail, the comments from GM you posted are only favorable things. They do not suggest how much GM makes on a Camaro or if they even make money on a Camaro.
Not trying to be a db on this, you just haven't shown the profitability or ROIC that GM is driving business decisions on.
Also keep in mind, Opel made outstanding products. They weren't making money. GM sold them at a loss to Peugot.