Why cars cost so much

T

TedCambron

#1
There are so many obvious reasons why cars cost so much that I thought it would be a good idea to start a thread about it.

I got a good one to start off with and it has to do with the cost of plating nothing.
Copper terminals used in automobiles are tin plated to help prevent corrosion. Some material is plated before it's processed leaving the base metal exposed and this is acceptable. Some plating thickness requirements are beyond conventional plating and require special treatment. This comes at higher cost and people in the automotive industry pay this higher price everyday.
Now let's recap. A higher price is paid for a plating thickness spec on an item which is only plated to protect itself but is not completely plated.
Amazing.
 
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R

ralphsulser

#3
Rotation of inexperienced engineers who never get to know the details of what they are placing on the drawings for suppliers to comply with. Obsolete specification standards, way too tight tolerances which increase tooling and piece prices. They seem to only pass along the specificatons and tolerances that have been previously listed before. Poor information never gets deleted or updated. By the time they get to understand what is really needed, they are reassigned again.
 
M

michelle8075

#4
This is a good subject. Being a Tier 1 to the Automotive Industry, I've seen a lot of things that waste money on their end, causing our car prices to go up. I really want to list everything here, but it would be too long. :eek: I come home daily with stories that upset me on how much is wasted.
 
#5
I agree: Definitely a good subject. So good in fact, that I moved it to the Misc. Quality Assurance and Business Systems Related Topics forum, where I think it will get the attention it deserves.

/Claes
 

Tim Folkerts

Super Moderator
#6
Besides any costs due to poor engineering/design/quality, a significant part of the increasing costs is the increasing level of features expected by buyers.

We love gadgets - power windows, remote control locks, intermittant wipers, lights that stay one for a minute after you exit the car, computers to diagnose problems, seats that fold out of view, ....

Would many Americans seriously consider a new car without AC, stereo, power steering, or automatic transmission?

I'm sure a perfectly reasonable new car could be sold for $5000, but we have been sold on the idea that we need all the cool/elegant/macho/sexy features.

Tim F
 
J

jmp4429

#7
Tim Folkerts said:
Would many Americans seriously consider a new car without AC, stereo, power steering, or automatic transmission?

Tim F
I hate power steering and wish I could buy a new car without it. :mad: Also, I hate that standard transmissions are an "option" now instead of well, standard.

Maybe cars cost so much because some T1 suppliers use different part #'s for the same part because it goes in different customers' products. Then they have to give up the volume discount, or carry twice as much inventory to get it. :nope:
 
T

TedCambron

#8
Saving money is low priority

Everyone knows that the big 2.5 are attempting to reduce there supplier base and have been for a while now. The reasons for doing this are many but saving money is not one of them. My organization supplies product that other suppliers are trying to divest but fail to do so because of this. We manufacture and ship the part direct yet we bill the last supplier who can't scrap the job off even when they're loosing money on it due to customers not wanting to add any new suppliers.
Now, in cooperation with our customer, have approached the big boys and offered a price reduction by cutting out the middle man. Yes, we will save them money in the long run guaranteed.
Guess what happened...
...and yet another reason cars cost so much.
 

Jen Kirley

Quality and Auditing Expert
Staff member
Admin
#10
Tim Folkerts said:
Besides any costs due to poor engineering/design/quality, a significant part of the increasing costs is the increasing level of features expected by buyers.

We love gadgets - power windows, remote control locks, intermittant wipers, lights that stay one for a minute after you exit the car, computers to diagnose problems, seats that fold out of view, ....

Would many Americans seriously consider a new car without AC, stereo, power steering, or automatic transmission?

I'm sure a perfectly reasonable new car could be sold for $5000, but we have been sold on the idea that we need all the cool/elegant/macho/sexy features.

Tim F
So true, but I wouldn't call power steering, AC, stereo or automatic transmission cool/elegant/macho/sexy features! For someone who spends a couple of hours a day in the car at least, these are the minimum.

The new Dodge Caliber has, among other features, a glove box that refrigirates four cans/bottles of soda. Now that's very cool! (no pun intended)

One reason the cars cost so much is the cost of all those warranty recalls. My husband used to be a mechanic at a dealership. Knowing as we do how costs for a single recall can stack up through attention by various people at all these levels, we can appreciate that the repair is just the tip of the cost iceberg!

I expect advertising is also a big drain, just as it is with cosmetics and fashion.
 
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