Re: Hording Muscle Cars?

[Bill Watson <wwatson6@xxxxxxx>]

They're thinking it would be nice to at least break even.  Designing, 
tooling and clearing various regulations for safety and emissions costs an 
awful lot more today than it did back in the 1960's.   Although Chrysler did 
use the 300/Charger platform as a base, all the new pieces for the 
Challenger are not shared with any other car.   When a company spends a 
billion dollars in tooling, etc. for car, that billion is amortized over the 
expected number of sales.  Thus if a car is expected to sell 1,000,000 units 
in the lifetime of that body, the tooling costs will be spread over 
1,000,000 units.  But if the car is expected to sell 300,000 units, the cost 
per vehicle is naturally higher.

And there lies Chrysler's problem.  Given market history, fewer Challengers 
will be sold than either Camaro or Mustang.   Thus you can expect the prices 
to be higher as tooling costs, etc. will be spread over a fewer number of 
vehicles.

Someone else was commenting on the price difference of the Mustang and 
Challenger, laying out all the specs of the two vehicles and did not clue 
into the reasons for the price difference.   The Challenger is on a longer 
wheelbase, is longer and wider, and thus is heavier - more steel, etc., 
results in more costs for materials, higher prices.  The higher costs of 
producing the rear suspension on the Challenger and the larger hemi engine 
over what Mustang offers also raises costs of production.

Auto companies need to make money on what they offer.  If not, well, we know 
what happens on that one don't we with both Chrysler and GM going through 
bankruptcy proceedings.

Bill
Vancouver, BC




----- Original Message ----- 
From: <thepulpitmaster@xxxxxxx>
To: <1962to1965mopars@xxxxxxxxxx>
Sent: Saturday, May 30, 2009 11:06 AM
Subject: Re: Hording Muscle Cars?




Ya know something funny?  I worked for Chrysler for 30 years and  wanted
the new Challenger when it hit the streets.  When I saw what  they were 
asking
for one, I changed my mind.  Granted, I would have  gotten the employee
price and save a few thousand on it, it was still out  of my price range. 
Was
surprised at the starting price of the new Camaro too.  Cheaper but still 
out
of my league.  What can they be thinking?  I  will stick with my Dodge
Grand Caravan and my 64 880's for now.

Dayv in Milwaukee


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