Quote:
Originally Posted by paul8488
Why do people use redesigning cars as an excuse for not making money? Car companies are constantly spending money on redesigning and redevelopping their vehicles. In fact it's much smarter to constantly have something on the design table, instead of doing it all at once (every 5 years, for example). Saying "Oh, the loss doesn't count because they spent so much redesigning a car" doesn't make any sense to me, because it's an integral part of the budget, not a one-time charge that can be explained away.
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Put simply, the majority costs are more to do with retooling & new equipment, which only occurs each major platform change (each 8 to 10 years). Most 'design work' would be done continually, in-house where the salaries are the same each & every year.
Dr Terry