Random Thoughts - Part Deux [NO POLITICS]

[cjd]

Saw an ad today for wheels that offered that perfect flush fitment.

Finally realized why so many of these cars look like shit.

[Spuds]

Originally Posted by Cole

I'm not talking about what they sold for. I'm talking about the cost to build them. I know they made a loss, curious as to how much of a loss.

Probably not too far off from (or less than) what it cost to develop a new Camry or whatever (at the time) would be my guess. Probably a smaller team too. The difference there is they don't really care what it cost to make as much. They also care less about "The Departments" because you aren't trying to sell it to everyone and their mother.

[echo419]

Originally Posted by Sapphireho

What took so long?

I'm out of adderall so it's kinda hard for me to focus, remember what I was doing and stay awake.

[krayzie]

Originally Posted by Cole

I'm not talking about what they sold for. I'm talking about the cost to build them. I know they made a loss, curious as to how much of a loss.

Some food for thought...

Toyota claimed to have spent over $1 billion USD over the course of 5 years developing the original Lexus LS400 during the booming 80's.

When Toyota ran an in-house F1 team during the 2000s, their annual budget was reported at $400 million USD and didn't win shit.

The Lexus LFA took around 10 years to develop with a supposedly loss leader MSRP of $350,000 USD, in which they abandoned the development of an all aluminum chassis halfway thru in favor of carbon fiber, requiring all new manufacturing processes unique to the company.

Anyway Toyota is huge and I'm sure making best selling shit boxes have allowed them to do pet projects like the LFA comfortably even at a loss, and without a need to price it like a Koenigseggggggggg (think how Seiko similarly sells cheap watches in the malls of America, is able to manufacturer lines like Grand Seiko and Credor yet can price them much less than a Rolex or Patek with the same if not higher quality and craftsmanship).

[krayzie]

And I forgot to mention Toyota like Seiko is a vertically integrated manufacturer which plays a part in keeping the cost low and quality control high.

[Cole]

Originally Posted by krayzie

Some food for thought...

Toyota claimed to have spent over $1 billion USD over the course of 5 years developing the original Lexus LS400 during the booming 80's.

When Toyota ran an in-house F1 team during the 2000s, their annual budget was reported at $400 million USD and didn't win shit.

The Lexus LFA took around 10 years to develop with a supposedly loss leader MSRP of $350,000 USD, in which they abandoned the development of an all aluminum chassis halfway thru in favor of carbon fiber, requiring all new manufacturing processes unique to the company.

Anyway Toyota is huge and I'm sure making best selling shit boxes have allowed them to do pet projects like the LFA comfortably even at a loss, and without a need to price it like a Koenigseggggggggg (think how Seiko similarly sells cheap watches in the malls of America, is able to manufacturer lines like Grand Seiko and Credor yet can price them much less than a Rolex or Patek with the same if not higher quality and craftsmanship).

I'm aware of the development cost of an average car, I know they lost money on the PFA. Just curious as to the dollar amount.

For example:
500 LFAs made
Retail of 350,000
500x350,000= $175,000,000 "made" on the LFA. I'm aware you could change options, and some LFAs cost more than 350,000.

If we go with $1B, then Toyota "lost" $825M.

I'm just curious as to what the real number was. Does any other company let it be known what it costs to develop low production number cars?

In any case, it really doesn't matter. Just a curious thought.

[humfrz]

Well, spring break is half over, so far so good ....... I took the girls sailing this morning .....


humfrz

[Dadhawk]

MomHawk and I recently started watching "Doc Martin" on Netflix. I think this guy is my new personal hero. He is great at his job, tells people exactly what he thinks, suffers no fools and still has the cutest girl in town fall for him. My kinda guy.

[humfrz]

Originally Posted by Cole

I'm aware of the development cost of an average car, I know they lost money on the PFA. Just curious as to the dollar amount.

For example:
500 LFAs made
Retail of 350,000
500x350,000= $175,000,000 "made" on the LFA. I'm aware you could change options, and some LFAs cost more than 350,000.

If we go with $1B, then Toyota "lost" $825M.

I'm just curious as to what the real number was. Does any other company let it be known what it costs to develop low production number cars?

In any case, it really doesn't matter. Just a curious thought.

It could be that the number you are looking for is unknowable. Why? Because they may not have tracked that number because it would have had to have been separated out of various R&D projects and distributed overhead of the limited production process.




humfrz

[Tcoat]

Originally Posted by Cole

I'm aware of the development cost of an average car, I know they lost money on the PFA. Just curious as to the dollar amount.

For example:
500 LFAs made
Retail of 350,000
500x350,000= $175,000,000 "made" on the LFA. I'm aware you could change options, and some LFAs cost more than 350,000.

If we go with $1B, then Toyota "lost" $825M.

I'm just curious as to what the real number was. Does any other company let it be known what it costs to develop low production number cars?

In any case, it really doesn't matter. Just a curious thought.

A billon is probably low balling it. It can cost almost a million for us to R&D a new rotor let alone a whole new super car.
They didn't "make" $350K on each car. That would imply that all the parts, tooling and equipment to build it were free. Believe me that stuff ain't free by a long shot. The costs of manufacturing are far greater than most people would ever believe. When they say they lost money at that price they probably didn't even include the R&D costs.
Not many companies release R&D costs for any car. Why would they? The ones that do are just using it as part of their marketing anyway. The good news is that they can write a pile of those costs off so in the long run they do not end up paying nearly what it looks like on the surface. They also gain tech that they can use in the normal cars so they can easily make that money back on the appliance vehicles.

[Tcoat]

Originally Posted by Dadhawk

MomHawk and I recently started watching "Doc Martin" on Netflix. I think this guy is my new personal hero. He is great at his job, tells people exactly what he thinks, suffers no fools and still has the cutest girl in town fall for him. My kinda guy.

A show about Doc Martens?
Sounds pretty boring to me.

[Dadhawk]

Originally Posted by Tcoat

A show about Doc Martens?
Sounds pretty boring to me.

First thing I think of every time I pick the show.

[echo419]

Originally Posted by humfrz

Well, spring break is half over, so far so good ....... I took the girls sailing this morning .....


humfrz

1,4, throw the rest overboard.

[Tcoat]

Originally Posted by echo419

1,4, throw the rest overboard.

Pretty sure any of them there would land you in jail. Even in Georgia.