Back in the early 90's an industrial machine manufacture was building a part that cost them $50.00 and retail at the dealer was $2800.00.
Verified proof and very secret at the time. It was all very eye opening.
Hyundai Tucson 1.6T Hybrid, engine damaged before first service is due
- Thread starter m3dh
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Verified proof and very secret at the time. It was all very eye opening.
Which has what to do with how much it actually costs a vehicle OEM to manufacture a complete engine?
Its all pretty standard industry wide. If I remember something I came across some years ago correctly someone in the know at chevrolet
in the 60's was building complete small block engines for around $30. Mass production and turning out hundreds of product per day is why the cost of the end product is fairly cheap as far as manufacturing costs. They made plenty on those selling at 300 to 500 in the dealers.
I think you may not remember correctly.
Even back then , there is no way that a complete engine could have been built for $30.00 unless it came attached to a lawnmower and was made by Briggs or Tecumseh.
Funny stuff, it wasn't too long ago you could get a gas mower at walmart for under $100. and in the 70's a gas chain saw at Earnst for $65.
To manufacture a small engine in those days is way less than you can comprehend.
To manufacture a small engine in those days is way less than you can comprehend.
I think I can comprehend just fine and I recognize your efforts at misdirection.
4 weeks at my Honda.
All they need is iron and labor, they already have casting sand and machines. And if it takes 30 guys like an hour to make 10 engines (and they get paid $10 an hour) that's $30 in labor cost. So if you get a machine to do a lot of the work or the people to work faster you could absolutely make an SBC for $30. You just need to already have a factory with the tools or make enough engines that the initial cost doesn't effect the overall manufacturing cost very much.
Its a deal where you either know the facts or don't. I've seen the facts as mentioned above.
Yeah, there is no allocable cost for the factory and a transfer line after all and there are no cutting, machining and tapping pieces to wear out of tolerance and require regular replacement.
For those who profess to know better, it would be nice if they'd share some of that wisdom in the form of verifiable links and not secret squirrel comments about how they know the facts.
For those who profess to know better, it would be nice if they'd share some of that wisdom in the form of verifiable links and not secret squirrel comments about how they know the facts.
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Yeah I don't believe it either. There are many costs to manufacture something, car makers turn a profit but I don't think the margins are that wide.
They are VERY wide on the parts side of the business. Every OEM does it. Most would be amazed at the profit in after sales parts...often selling for orders of magnitude over cost to the OEM.
Exactly. And those parts are part of the many costs of building the engine, transmission and the final product. So the margins would be high on the individual parts but not so much on the engine and even less so on the final vehicle.
Regardless- quality was in the dark ages compared to todays LS offerings.
Serious? Too many corners cut on the LS junk. It is a normal nowadays ill designed engine like most all manufactures do now. Do you know what areas I'm talking about?
I'm not saying the Jap brands are worth the cost today- but when cheaping out
I don't know the LS well, I do know o-rings and tiny filters are a problem, piston slap- but many go the mile my 2019 5.3 DOD is closing in on 180k km's with only oil changes- I have more issues with the trans performance. I run the old SBC (385cid) that was hand built which I paid too much for- but I don't think the manufacturing side from the 60-80's was any hell, I'm not talking design- I'm talking quality of machining and build.
Casting sand isn’t cheap, molds definitely aren’t cheap and don’t last forever requiring skilled tool and die guys to repair/replace them, machine time definitely isn’t cheap, the machines themselves are incredibly heavy and very expensive, and tooling for those machines aren’t cheap.
I’m running some castings right now… we’re at $165 in material and labor before it ever touches a lathe or mill (we pour our own castings, some investment some sand cast). And that’s assuming this batch of castings is good, sometimes they’re full of porosity and we have to scrap out a ton of parts.