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      05-01-2012, 07:03 PM   #1
BMW_Boy7
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Question F30 manufacturing cost?

Does anyone know how much it cost BMW to make these cars as opposed to selling them at the sticker price....? I've always been curious about that. Anyone work in the factories or corporate?
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      05-01-2012, 08:14 PM   #2
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Truecar.com will tell you the approx dealer cost/factory invoice. You can somewhat gage from there
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      05-02-2012, 12:56 AM   #3
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This is an extremely complex question. It all depends on how you calculate cost to manufacture. Are you thinking trying to put a number similar to what iFixIt does for an iPhone? Unlike the iPhone, there aren't discrete "cost" prices for each part as a lot of the parts are manufactured by BMW (think the chassis stamping). Do you include the cost of the factory and how do you amortize it per unit? Each factory (same country or different country) has different labor cost per unit. R&D costs? Etc. Etc.

I will give one data point I heard a long time ago from the old NUMMI plant that manufactured Toyota/GM cars in Northern California. 60% was the cost of the factory. 20% was parts. 20% was labor. If we assume that it takes 6 days to build a car and the factory workers have 1 shift for maybe 7 hours, that works to 42 hours. Labor cost ~ $60/hr (guesstimate) works to about $2520 in labor. Let's say that BMW parts to labor cost is 2x of Toyota, that works out to about $5040 in parts. Now, if I were to say how BMW would calculate their total cost per unit. I'd guess in the range of $10-15k. This of course is just spit balling the numbers.
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      05-02-2012, 05:20 AM   #4
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sticker price is 7% more than the car actually costs the dealer, if you go to any bmw dealer u should be able to negotiate the price freely. I did not know that till I noticed that many pple paid lower than the syicker price and I was surprised, I thought that was the lowest price u could get and its based on the manufacturer, turned out to be the suggested price for the cosumer for each option, but it actually costs way less than that.
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      05-02-2012, 06:10 AM   #5
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Figure on 50% of MSRP.
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      05-02-2012, 02:25 PM   #6
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Quote:
Originally Posted by BMW_Boy7
Does anyone know how much it cost BMW to make these cars as opposed to selling them at the sticker price....? I've always been curious about that. Anyone work in the factories or corporate?
It's pretty simple to compute the actual cost of a new BMW.

To produce (the first out of the factory) a single BMW 3 series it will cost you $3,361,521,710.12

When you produce your second car, the cost will drop in half to $1,680,760,855.06 each.

Produce two more cars and your cost per vehicle will drop again in half to $840,380,427.53 each.

Produce four more cars and the cost per vehicle (for all cars produced) will drop in half again to 420,190,213.76 each.

Produce eight more cars and the cost per vehicle will be cut in half again and so on.

Well perhaps this is a stretch, but this is somewhat valid nevertheless.

If BMW created its first 3 series (one car) and then the factory burned down to the ground along with all the spare raw materials then (assuming this was the only factory) there is no doubt that the cost to build that single car would be something like $3,361,521,710.12!!!
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      05-02-2012, 08:38 PM   #7
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Quote:
Originally Posted by BMWrules7 View Post
It's pretty simple to compute the actual cost of a new BMW.

To produce (the first out of the factory) a single BMW 3 series it will cost you $3,361,521,710.12

When you produce your second car, the cost will drop in half to $1,680,760,855.06 each.

Produce two more cars and your cost per vehicle will drop again in half to $840,380,427.53 each.

Produce four more cars and the cost per vehicle (for all cars produced) will drop in half again to 420,190,213.76 each.

Produce eight more cars and the cost per vehicle will be cut in half again and so on.

Well perhaps this is a stretch, but this is somewhat valid nevertheless.

If BMW created its first 3 series (one car) and then the factory burned down to the ground along with all the spare raw materials then (assuming this was the only factory) there is no doubt that the cost to build that single car would be something like $3,36,521,710.12!!!
Y are these figures soo damn big? shouldn't it b more like 37,000 sumthin or more?
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      05-02-2012, 08:40 PM   #8
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Quote:
Originally Posted by XENONX View Post
sticker price is 7% more than the car actually costs the dealer, if you go to any bmw dealer u should be able to negotiate the price freely. I did not know that till I noticed that many pple paid lower than the syicker price and I was surprised, I thought that was the lowest price u could get and its based on the manufacturer, turned out to be the suggested price for the cosumer for each option, but it actually costs way less than that.
So if I'm a good negotiator I got 7% of wiggle room...lol
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