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Lutz: Camaro profits $8K-$9K higher per car than forecast.

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Old Jan 14, 2010 | 12:17 PM
  #16  
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Originally Posted by WhiteHawk
I was going to say that too. The statement about GM overpricing the V8 sounds like a writers embellishment. There is no Lutz quote.

-Geoff
What does make a bit more sense would be that Camaro TRANSACTIONAL prices are much higher than other vehicles on dealer lots that have $35K-$40K MSRP's.

THAT would square more in keeping with the higher dollar amounts discussed in the article.

Like I said...I wasn't there to hear what was said.

Last edited by 1fastdog; Jan 14, 2010 at 12:23 PM.
Old Jan 14, 2010 | 12:39 PM
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Originally Posted by JakeRobb
How much do you think Brembo brakes, 20" wheels and tires, a different front fascia, beefier transmission, and lots of SS-specific trim costs? I think it'd be easy for that to rack up the $4500 difference..
I doubt the SS specific front facia costs GM any more than the V6 facia. And what SS specific parts are on a Camaro besides the facia? The badges?

Originally Posted by JakeRobb
The G8 GT didn't have any of that -- it was just an engine upgrade and a badge. Also, it's possible that the G8's engine costs less than an LS3.
You missed a few...

G8 GT also got...standard....
-6-speed 6L80 automatic
-quad tailpipes
-clear taillight lenses (as opposed to the Sedan's traditional red taillights)
-automatic dual-zone air conditioning
-a larger center-console display screen
-11-speaker Blaupunkt premium audio system with 2 subwoofers, six-disc CD changer, and auxiliary input jack.

A $600 (retail) sports package is available on the GT, adding sport metallic pedals, QS4 19" machine-faced aluminum wheels, summer performance tires and a slightly smaller diameter, leather-wrapped Sport steering wheel.
Old Jan 14, 2010 | 01:13 PM
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Originally Posted by CLEAN
I doubt the SS specific front facia costs GM any more than the V6 facia. And what SS specific parts are on a Camaro besides the facia? The badges?
In addition to the stuff I already mentioned, the SS has a different steering wheel, gauge cluster, seats, door sills, spoiler, shifter, transmission oil cooler, engine oil cooler, suspension, and exhaust. The steering wheel, cluster, seats, and door sills all have the SS logo.

The G8 GT comes with the 6L80? I thought it had a five-speed.

EDIT: also, the SS comes with some wheel weights on the brake calipers.

Last edited by JakeRobb; Jan 14, 2010 at 01:16 PM.
Old Jan 14, 2010 | 01:41 PM
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Originally Posted by 1fastdog
What does make a bit more sense would be that Camaro TRANSACTIONAL prices are much higher than other vehicles on dealer lots that have $35K-$40K MSRP's.

THAT would square more in keeping with the higher dollar amounts discussed in the article.

Like I said...I wasn't there to hear what was said.
That makes total sense. They are selling mostly $35-$40,000 cars right now, so the average price is probably $36,000 as opposed to $28,000 if they were selling a bunch of lower content V6's.

Still, that is the kind of problem you want to have if you are an automobile manufacturer!

-Geoff
Old Jan 14, 2010 | 02:01 PM
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Originally Posted by WhiteHawk
That makes total sense. They are selling mostly $35-$40,000 cars right now, so the average price is probably $36,000 as opposed to $28,000 if they were selling a bunch of lower content V6's.

Still, that is the kind of problem you want to have if you are an automobile manufacturer!

-Geoff
The transaction price is a plus, but if your CAFE plans are contingent upon selling say 65% (just guessing) V6's and you're only at 20% - you could be in trouble soon.
Old Jan 14, 2010 | 02:01 PM
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My point is how much extra cost is there in all that stuff? The little SS badges and trim is a trivial cost difference, if any.

Don't recall if the GT has any of the coolers, but it does have the 6sp auto (V6 cars have 5 spd auto), a heavier duty suspension and brakes (though no brembos), bigger exhaust, it already has a spoiler, and the banging stereo. The $600 sport package gets you the 19's and the sport steering wheel.

Why dispute it? Even GM is saying there's 8-9k profit in each V8 car. There is NO WAY there is $7k in extra cost from a v6 to a v8 car, otherwise V6 cars would have the same profit margins, which they don't, not by a long shot.
Old Jan 14, 2010 | 02:34 PM
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Originally Posted by WhiteHawk
That makes total sense. They are selling mostly $35-$40,000 cars right now, so the average price is probably $36,000 as opposed to $28,000 if they were selling a bunch of lower content V6's.

Still, that is the kind of problem you want to have if you are an automobile manufacturer!

-Geoff
Geoff, I really can't figure what that article is basing it's story on.

I don't know the per unit profit, but I would be laughing myself silly if it weren't for the fact some folks will take this article as gospel.

My reasoning is that in 2008 the Harbour Report made their findings for 2007 public as it pertained to profitability per unit for the major manufacturers. It was listed on a per unit profit average, but pre-tax.

The Harbour Report reported that:

Ford lost $1,467 per vehicle in 2007,
GM lost $729 per vehicle in '07
Chrysler lost $412 per vehicle in '07,
Toyota made $922 per vehicle in '07,
Honda and Nissan both made $1,641 per vehicle in '07.

True enough, these are averaged numbers.

I'm just trying to insert some additional info for rational consideration.
Old Jan 14, 2010 | 03:34 PM
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I think there may be abit of oversensitivity to the "overpriced" comment. As long as the customer perceives a good value proposition - what's the problem? Does anyone think it costs GM $50+ grand to make a Corvette? But people pay that and more everyday, with a smile on their face. Nothing wrong with making a profit.
Old Jan 14, 2010 | 03:52 PM
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Originally Posted by JakeRobb
How much do you think Brembo brakes, 20" wheels and tires, a different front fascia, beefier transmission, and lots of SS-specific trim costs? I think it'd be easy for that to rack up the $4500 difference.

The G8 GT didn't have any of that -- it was just an engine upgrade and a badge. Also, it's possible that the G8's engine costs less than an LS3.
How much more expensive is the DI 3.6L DOHC V6 to produce than an LS3 that shares most of its components with a platform that sells 500k+ units annually (trucks)?

also, as for the G8 GT, I don't think the engine costs less than the LS3. the bottom end is basically an LS2 bottom end. the top end has LS3 heads/intake but don't forget it has DOD which will add a little to the cost. I think the difference in manufacturing costs are negligible.
Old Jan 14, 2010 | 04:23 PM
  #25  
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Originally Posted by Zigroid
How much more expensive is the DI 3.6L DOHC V6 to produce than an LS3 that shares most of its components with a platform that sells 500k+ units annually (trucks)?
Fair question, but how many HFV6s are sold in Camaros, G8s, Malibus, Auras, CTSs, STSs, SRXs, LaCrosses, Acadias, Outlooks, Enclaves, Traverses, G6s, Equinoxes, Torrents, and Vues, not to mention a dozen or so Holden models, plus some Opels, Saabs, and Daewoos? It may not be half a million, but I'll bet the economies of scale are more or less maxed out in both cases.

The LS3's parts are all bigger, requiring more raw materials. The 3.6 has more parts, but they're small valvetrain parts -- maybe a couple hundred dollars worth at most.
Old Jan 14, 2010 | 04:38 PM
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So can we reason on the basis of the margins made, that if the Camaros weren't priced as high, the sales figures would be even higher?
Old Jan 14, 2010 | 08:12 PM
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Originally Posted by SSbaby
So can we reason on the basis of the margins made, that if the Camaros weren't priced as high, the sales figures would be even higher?
Nope, they would be the same since they are selling pretty much everything they are building. If GM could make more they would. If it was cheaper, demand would be even higher and supply would be the same.

-Geoff
Old Jan 14, 2010 | 09:19 PM
  #28  
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See. I KNEW it was overpriced.
Old Jan 14, 2010 | 09:20 PM
  #29  
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Originally Posted by WhiteHawk
Nope, they would be the same since they are selling pretty much everything they are building. If GM could make more they would. If it was cheaper, demand would be even higher and supply would be the same.

-Geoff
Could we say that if the price was lower, there would be more sold orders?
That seems plausible.
Old Jan 15, 2010 | 12:49 AM
  #30  
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Originally Posted by JakeRobb
How much do you think Brembo brakes, 20" wheels and tires, a different front fascia, beefier transmission, and lots of SS-specific trim costs? I think it'd be easy for that to rack up the $4500 difference.

The G8 GT didn't have any of that -- it was just an engine upgrade and a badge. Also, it's possible that the G8's engine costs less than an LS3.
Some part of me thinks that Chevrolet doesn't pay average retail for their parts



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