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Politics : Formerly About Advanced Micro Devices
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To: i-node who wrote (442227)12/23/2008 2:39:53 PM
From: Alighieri  Read Replies (1) of 1575862
 
R&D costs run about $1,000/vehicle, typically. Some more, others less, but not close to what labor costs run.

That's only part of the equation. COGs are typically very sensitive to volumes, fixed infrastructure costs, tooling costs, roll into COGs in some fashion, either through direct allocations or through amortization expenses...point is that volume is king. The F150 is doing ~400K vehicles per year, the Chrysler Crossfire less than 5K...guess which one is making money and which is losing money?

Al
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