KearsargeCoop
Baseball, dart board
Well what's the markup on a car? Say it costs them 10k to build a 40k Escape. That means the $900 labor increase will equate to a $3600 sticker increase, no?
UAW strike!
- Thread starter Steamer
- Start date
PT Car Washer
Well-Known Member
Management gets their cut also.
Trucker Clock
Well-Known Member
Nope. That’s not how it works.
The automaker typically makes around 7.5% profit on a car. If the price to manufacture the car went up by $900, the automaker only has to raise the price of the car by $900 to maintain the same profit on the car.
No other costs associated with the car went up except the labor to build it. Raise the price of the car $900 and they still get their 7.5% profit.
They would have to raise the price by 967.50 to maintain the same 7.5% profit margin
newolddude
Well-Known Member
It’s okay when UPS workers secure better pay and other concessions through collective bargaining. But when anyone else does it…. BAD!
Satuirus2000
Well-Known Member
Yeah, I don't get why people are trying to be negative about this. Too much I got mine and screw everyone else energy, which has no place in a Union environment.
Most of us are glad they got a good deal
We was just talking about the how much the price of a vehicle is going to go up
I'm glad those guys got a good contract was going to take him a while to make that money back up they lost while they was on strike
Trucker Clock
Well-Known Member
I thought about that, but didn't want to do the math. $900 was close enough for Government work.
I'm sure they'll round it up another hundred bucks or two to boost their margins
Trucker Clock
Well-Known Member
The dealer also makes a little less than 4% typically, so that adds a few dollars also.
So a closer figure would probably be adding about $1000 to the price of the car to cover everything. But no where near $3600.
Commercial Inside Release
Well-Known Member
How do you explain dealer markups over MSRP, then?
markups.org
Markups.org
Technology that enables transparency, keeping markets free and competitive. A crowdsourced listings site made up of consumer posts sharing non-markup, markup
markups.org
I have NOT been lurking
Degenerate Member
You're being anti SemiticHow do you explain dealer markups over MSRP, then?
Markups.org
Technology that enables transparency, keeping markets free and competitive. A crowdsourced listings site made up of consumer posts sharing non-markup, markup
Commercial Inside Release
Well-Known Member
Leave my Auntie out of this...
Trucker Clock
Well-Known Member
How do you explain dealer markups over MSRP, then?
Markups.org
Technology that enables transparency, keeping markets free and competitive. A crowdsourced listings site made up of consumer posts sharing non-markup, markup
A dealer can charge what they want for a car. It is usually based on what a customer will pay. On average, it is like 3.8% I believe.
A hot selling car/truck with low inventory, or a limited production vehicle, could net a dealer over the MSRP. But that extra profit goes to the dealer, not the automaker.
And that extra markup, over and above MSRP, has nothing to do with the extra $900 labor to build the car.
newolddude
Well-Known Member
Ford deal offers hourly UAW members $50,000 buyout: Who qualifies
The $50,000 offer mentioned in the tentative deal between Ford and the UAW is listed on page 13 of the highlighter.
www.freep.com
Elon Musk, who hates unions, has to deal with a rare strike at Tesla after his Swedish workers walked out
Dockworkers in Sweden could block Tesla vehicles from being unloaded in the country in a show of support for the strikes.
www.businessinsider.com
rod
Retired 22 years
If I had a $1,670 a month car payment I'd shoot myself. Can you imagine dealing with that guy on a new car---he would bend you over backwards to up his commission.
