Home
What's new
Latest activity
Authors
Store
Latest reviews
Search products
Forums
New posts
Search forums
What's new
New posts
New listings
New products
New profile posts
Latest activity
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
Cart
Cart
Loading…
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Search titles only
By:
Menu
Log in
Register
Navigation
Install the app
Install
More options
Change style
Contact us
Close Menu
Forums
SVTPerformance's Chain of Restaurants
Road Side Pub
Ford equal to Junk?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="CV355" data-source="post: 16285523" data-attributes="member: 181885"><p><em>"Ford's performance has eroded "during a period in which global automotive conditions have been fairly healthy," Moody's said."</em></p><p></p><p>I agree with the first 4 words. Everything after that is a blatant lie.</p><p></p><p>Automotive OEM/MFG work is a mess right now. Nobody has money, and re-tools are kludges. Many economic strategists are recommending avoiding automotive for the next two years for the industry I'm in. I thought 2014 was an abysmal year for automotive manufacturing, but 18/19 are far worse.</p><p></p><p>Sometimes it boggles my mind how big automotive companies actually make profit. Tooling, machine, logistics, quality, scrap costs every part add up, and I just don't see how they make money. Then, I go to a stealership and see MSRPs in the $50k-$60k range for things that should really be in the $20k range and I go "hmm."</p><p></p><p>I've worked on million dollar systems that produce a "widget" that hides under a dashboard. I've also worked on BIW systems that are well into 8 figures. Manufacturing isn't cheap. Just the capital costs (excluding labor) make it look like a non-lucrative business. I really have no idea how they make money. You don't make loss up in volume. Subtract out all of the cumulative margin from sticker price back to component price, and it does not make sense.</p><p></p><p>Example: Tier 1 company bids on producing Component A. Component A = ((Labor + Capital + Wear/Maint + Raw Material / Incoming + Packaging) * (1/Yield) * (1/1-%Margin)) / Required Volume. In a nutshell. That's excluding project management / engineering resources. A component may cost $0.50 to make, but the compounded margins and overhead make it cost $15 to the end consumer.</p><p></p><p>Too many hands in the pot.</p></blockquote><p></p>
[QUOTE="CV355, post: 16285523, member: 181885"] [i]"Ford's performance has eroded "during a period in which global automotive conditions have been fairly healthy," Moody's said."[/i] I agree with the first 4 words. Everything after that is a blatant lie. Automotive OEM/MFG work is a mess right now. Nobody has money, and re-tools are kludges. Many economic strategists are recommending avoiding automotive for the next two years for the industry I'm in. I thought 2014 was an abysmal year for automotive manufacturing, but 18/19 are far worse. Sometimes it boggles my mind how big automotive companies actually make profit. Tooling, machine, logistics, quality, scrap costs every part add up, and I just don't see how they make money. Then, I go to a stealership and see MSRPs in the $50k-$60k range for things that should really be in the $20k range and I go "hmm." I've worked on million dollar systems that produce a "widget" that hides under a dashboard. I've also worked on BIW systems that are well into 8 figures. Manufacturing isn't cheap. Just the capital costs (excluding labor) make it look like a non-lucrative business. I really have no idea how they make money. You don't make loss up in volume. Subtract out all of the cumulative margin from sticker price back to component price, and it does not make sense. Example: Tier 1 company bids on producing Component A. Component A = ((Labor + Capital + Wear/Maint + Raw Material / Incoming + Packaging) * (1/Yield) * (1/1-%Margin)) / Required Volume. In a nutshell. That's excluding project management / engineering resources. A component may cost $0.50 to make, but the compounded margins and overhead make it cost $15 to the end consumer. Too many hands in the pot. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
SVTPerformance's Chain of Restaurants
Road Side Pub
Ford equal to Junk?
Top