Atvm News - 2018 Fed Budget Proposal

[MrWhsprs]

I heard that the profit in each vehicle was supposed to be $1,000 , so out of that $7,300 the true cost would have to have been $6,300.
That's a pretty thin slice to get out of it.

The worksheet I mentioned shows "Margin" of $1,000 but also a "Sticker Price at Target BOM" of only $5,959 (or, about 16.8% of sticker). In addition to Margin each vehicle had built-in amounts for Retail Operations (3.8% of sticker), Advertising (5.8%), and Warranty/Liability (2.5%). Their estimated "fully manufactured cost" was only about 71% of sticker price.

Again it seems to be a very old worksheet and certainly the $ numbers have changed since then (we know the sticker price has), but it gives an idea of what kind of percentages they were figuring to get margin and cover all the costs of production, retail, advertising, warranty.

 

[pistonboy]

As I understand, the DOE was extremely slow about making decisions regarding ATVM loans. So slow in fact, companies would go out of business while the DOE deliberated. Then the program was reorganized.

I believe the speed of making decisions was suppose to be one of the things improved.

I hope this is true.