. But then again Cobalt sales and transaction prices are way up.
There are two types of profitable vehicles:
The first are vehicles that customers are willing to pay significantly more to buy than they cost to build. For example, a few years back, Ford was making a minimum $19,000 profit on every Lincoln Navigator sold. Customers seemed not to mind paying $45,000 for a $25,000 vehicle.
The second group are vehicles which have amortized development costs, in other words, the tooling etc have been long paid for. Given the prehistoric age of most of GM's pre-2003/2004 technology, GM should have been raking in shekels hand over fist. The platforms were paid for a decade ago, and most GM powertrains were paid for before Reagan left office...
The first are vehicles that customers are willing to pay significantly more to buy than they cost to build. For example, a few years back, Ford was making a minimum $19,000 profit on every Lincoln Navigator sold. Customers seemed not to mind paying $45,000 for a $25,000 vehicle.
The second group are vehicles which have amortized development costs, in other words, the tooling etc have been long paid for. Given the prehistoric age of most of GM's pre-2003/2004 technology, GM should have been raking in shekels hand over fist. The platforms were paid for a decade ago, and most GM powertrains were paid for before Reagan left office...
