RE: [DMCForum] Back to SUV!

["timnagin" <timnagin@xxxxxxxxxxxxxx>]

The key word there is "estimates".  I will let you in on a little secret, if
you didn't know this already.  Having worked for a major parts supplier to
the automakers, I can tell you a thing or three about the profits.

The cheaper the car, the lower the profits and the more expensive the
higher.  On some vehicles that are just badge engineered, like the Suburban
becoming a Cadillac Escalade, the parts required to create the Escalade can
sometimes be made cheaper than the Suburban counterpart.  So, the profits go
up greatly when this happened as you are paying for a "better" vehicle that
could actually cost less to build.

To say this only applies to SUV's is not true.  This is a general rule of
thumb across any platform and yes, even non-SUV's.  Sure, the sales person
will tell you it's on a different platform but it ain't so.  So like I said,
there is nothing inherently BAD about an SUV; it's just different.
Perception is an entirely different animal, all together. :)

Greg



-----Original Message-----
From: Marc Levy [mailto:malevy_nj@xxxxxxxxx]
Sent: Monday, April 11, 2005 9:48 AM
To: DMCForum@xxxxxxxxxxxxxxx
Subject: RE: [DMCForum] Back to SUV!



"J.D. Power and Associates estimates that SUVs now
account for 15 percent of sales (rising every year),
but they yeild a whopping 60 percent of industry
profits! "

It may be even MORE than double!

--- timnagin <timnagin@xxxxxxxxxxxxxx> wrote:

> In regards to the farmer and the auto manufacturers,
> you would be hard
> pressed to prove SUV's double their profit.
>
> Greg

---

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