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What vehicles does GM make money on?

3782 Views 7 Replies 7 Participants Last post by  2002 Caddy
I've read before that small vehicles, such as the Aveo and Cobalt, don't directly bring in revenue by themselves, but exist so a customer will hopefully "step up" into something that will bring GM money later on, or to satisfy dealers when they don't have a small car to sell :D. But then again Cobalt sales and transaction prices are way up.

I DO know that traditionally, pickups and SUVs were a good money maker. Even with sales are far down as they are is money still being made? How about like H2's?

How about like the SAABs? Uplanders? ASTRA's? G8's?
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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...
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