[DML] Re: Best comment on the Delorean Yet -- PRICE

["James Espey" <james@xxxxxxxxxxxx>]

Actually, it is more cost-driven than demand-driven, though the
current demand means we have been back-ordered at least one car all
year, and at one time as many as four.

The cost of suitable donor cars has been rising, and they are needing
more work to make into remanufactured cars, as well. It's about 480
man-hours per car at this time.

We are constantly upgrading the specification on the cars, including a
great deal of re-work on the underbodies on the last three or four
cars that earlier ones did not have. That is a significant added cost
in labor and materials.

We are still working hard to improve the warranty to a full, two-year,
unlimited mileage, bumper to bumper warranty. Current cars have a
two-year powertrain warranty. This full warranty, supplied by
aftermarket warranty company, will add significantly to the cost of
the cars, and we feel it will significantly add to the appeal of
buying a "25 year old car".

As with everything else, material costs are rising, as is labor and
associated costs - taxes and insurance to name a few. Weakness of the
dollar versus the pound and euro has been a big thing this year, and
rising interest rates affects more than motgages, too.

Those last couple things have a profound effect on the handful of
parts that we use in the remanufacturing process that are a pain to
get, particularly as we go "hand to mouth" on parts that either in
short supply or awaiting reproductions to be on hand.

James Espey
DMC (Texas)
http://www.delorean.com


--- In dmcnews@xxxxxxxxxxxxxxx, "Dave Swingle" <swingle@xxxx> wrote:
>
> Econonomics - Supply and demand. This sort of thing is demand-driven, 
> not cost driven (to a point). They can only do so many a year, as 
> long as they have a backlog they can raise the price. If they stop 
> selling (or someone else floods the market with "re-manufactured" 
> cars for less money), the price will stabilize or go down. If demand 
> price goes below cost, they stop building them. 

(SNIP)

> --- In dmcnews@xxxxxxxxxxxxxxx, "Christopher Sztybel" <csztybel@xxxx> 
> wrote:
> >
> > That seems like a large jump twice a year. Any reason that you know 
> of?
> > Labor costs going up or the scarcity of parts? I'd like to know 
> why, just
> > because a refurb is something I've pondered.

(SNIP)








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