Archived posting to the Leica Users Group, 2004/07/14
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]The team makes its own cars - this is a requirement of the World Championship, there is almost never a completely destroyed car. I can not remember the last time we needed to replace a whole car. I have no idea how one would legitimately cost the individual parts because to do so honestly would require knowledge of the production volume, which was my whole point. The tooling for a Champ car costs about $2,000,000, ie very cheap. If you make 20 cars the tooling accounts for only $100,000 per car, if you make 5 it is $400,000 per car. You can only guess how many you will sell and so the ability to go bankrupt is extremely high! Leica volumes are much higher than this - I guess - but there is still a potential for massive errors when volume is low. Frank On 14 Jul, 2004, at 08:41, Dan C wrote: > But if they wreck a car during a race, how much does it cost the team > to > get a replacement? > > -dan c. > > At 08:08 AM 14-07-04 +0100, Frank Dernie wrote: >> This sum includes the design, R&D and tooling costs including overhead >> and salaries for the appropriate employees - it is the break even cost >> at which one would have to sell the car to not go bust. It does not >> include mechanics, travelling etc expenses for racing it. It does not >> include the engine (!) >> Frank >> >> >> On 13 Jul, 2004, at 23:40, Dan C wrote: >> >>> Frank, what do you mean by production cost? The $25,000,000 >>> includes >>> R&D, salaries for all the mechanics, etc. etc., doesn't it? > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information >