I found this interesting article from the Nov. issue of Car and Driver, Hecho en Mexico- Your next German car may never cross the Atlantic, only border. by Jeff Sabatini. Here's some excerpts:
"Predictably, manufacturers have been drawn to Mexico for its low wages. Mexican automakers' compensation is only about 20% that of their U.S. counterparts. This means a Chevrolet Sonic manufactured at GM's Ramos Arizpe plant costs the corporation $674 less than it does to build the same car in Michigan, according to CAR. That advantage is greater than the typical profit margin on a subcompact." And here's another one:
"But Mexico's appeal goes beyond cheap labor. Carmakers say Mexican workers are CAPABLE of building vehicles to a standard that meets or exceeds that of their best plants elsewhere."
Ok so enough of that. My point after reading this disturbing (kind of) article is, how can PE and his EM sustain production that is if they ever get to that point with minuscule profit? Tesla has been operating at a loss but have money to burn. Could this be one of the reason why that ATVM or other angel investors are worrying about? $6,800 an almost impossible dream? Some in here including me are almost resigned to a higher basic price than what they are advertising and others wants to look somewhere else if EM don't meet it. In my head the numbers just don't add up anymore but I'm just being realistic but at the same time still very hopeful. EM have worked so hard to get to this point and it'll be heartbreaking to see them fail. The only real undeniable FACT right now is our ELIO is still the car of the FUTURE! How long it'll remain at that stage lies on the approval of ATVM loan AND the angel investors WILLING to take the risk as we all did when we made our reservations! Strictly my opinion only.
"Predictably, manufacturers have been drawn to Mexico for its low wages. Mexican automakers' compensation is only about 20% that of their U.S. counterparts. This means a Chevrolet Sonic manufactured at GM's Ramos Arizpe plant costs the corporation $674 less than it does to build the same car in Michigan, according to CAR. That advantage is greater than the typical profit margin on a subcompact." And here's another one:
"But Mexico's appeal goes beyond cheap labor. Carmakers say Mexican workers are CAPABLE of building vehicles to a standard that meets or exceeds that of their best plants elsewhere."
Ok so enough of that. My point after reading this disturbing (kind of) article is, how can PE and his EM sustain production that is if they ever get to that point with minuscule profit? Tesla has been operating at a loss but have money to burn. Could this be one of the reason why that ATVM or other angel investors are worrying about? $6,800 an almost impossible dream? Some in here including me are almost resigned to a higher basic price than what they are advertising and others wants to look somewhere else if EM don't meet it. In my head the numbers just don't add up anymore but I'm just being realistic but at the same time still very hopeful. EM have worked so hard to get to this point and it'll be heartbreaking to see them fail. The only real undeniable FACT right now is our ELIO is still the car of the FUTURE! How long it'll remain at that stage lies on the approval of ATVM loan AND the angel investors WILLING to take the risk as we all did when we made our reservations! Strictly my opinion only.
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