Originally posted by 87chevy
Why does it cost so much for you Europeans to build 'Super Cars'?
That's a fair question. I'll tackle it. Dollar for dollar, euro for euro, true imports are more expensive by reason of economics. Reader beware!! This turned out to be a lot longer than I intended.
First, there's the exchange rate and the cost of labor differences in the US vs. EU. It has become more and more expensive to build cars in Europe. This is why you see VW building cars in Mexico and BMW building cars in South Carolina.
Second, there's a difference in the market. A $40,000 C5 Coupe and a $70,000 911 Carrera are very similar in performance. But by virtue of the Vette being priced the way it is, Chevy sells a lot more of them. I don't know the exact numbers, but I'd wager GM sold FIVE C5s for every 911. This means GM can take advantage of economies of scale. When you build more of something, each unit can cost you less.
This is precisely why Porsche needed to build a truck and an entry level sports car (Boxster). Of course, someone who pays 70 large for a sports car would expect advantages of the one that costs 40 large. And if you've ever driven a 911, you would notice there are several. You can start with build quality and end with resale value, but you should not forget the most important quality of
driving experience. There is a reason why a 3 year old 996 still costs as much as a brand new Z06... and its not because Porsche buyers are gullible. (well.. maybe DOUG IS
)
This doesn't mean I think Porsche doesn't need to provide more value for the dollar. In fact, I think the 996 is still over priced by 10-15 grand.
Which brings us to the third and perhaps most diffucult to grasp of my reasons. People in the market for a 911 would not likely cross shop a C5. Why? I believe its because of the same reason why people eat tenderloin over sirloin. Pound for pound, sirloin steak is a better value than tenderloin steak. So why do people still buy tenderloin? Because a) it tastes better and b) because they can afford to.
M
