<VV> "Domestive" versus "Import"

[Dave Keillor]

Some of you folks are chasing the wrong bogey man and need to take a
course in corporate finance.  When you are concerned about where the
profits go, you're trading pennies for dollars.  Here are numbers some
work done in 2000 on how the MSRP breaks down on average:

 

    Manufacturing cost (materials and labor) . . . 50%

    Warranty . . . 5.0%

    R&D/Engineering . . . 6.5%

    Depreciation and amortization . . . 5.5%

    Corporate overhead . . .  7.0%

    Selling . . . 23.5% 

    Profit . . . 2.5%

 

Which benefits the U.S. the most in terms of money and jobs, a Honda
built in Ohio, or a Dodge RAM built in Mexico?  Which one is the
"import" and which one is the "domestic"?  Which would you rather have
in the U.S., profit or manufacturing?  Face it, the car business is
global, not "domestic".

 

Dave Keillor