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    Audi might, but dealers don't ! Open a dealership and then try negotiating with AoA or VAG
    Posted by: April/verdegrrl on 2001-08-10 17:00:22
    Account #: 3127 Moderator

    In Reply to: Re: Audi makes over 10k profit per car! posted by srleo on 2001-08-10 16:44:53

    directly. You're negotiating with the wrong party if you want to nibble at 10K profits per car. A huge amount of that "profit" goes back into R&D. VAG has the highest R&D budget of any car company. In fact Ferdy gets into trouble with shareholders for doing that.

    The car industry as a whole, makes 3% profit after R&D and over head. As a start-up business, it is not a wise choice. You need huge economies of scale.

    Given the huge overhead, long term investment, R&D, warranty and and liability among many other costs, that 10K must vanish pretty fast.

    Should those parts suppliers make less money ? Was VDO underpaid ( and thus not allocate sufficient talent ) for doing the fuel senders ? VAG goes outside the company to reduce overhead.

    That 10K does not reflect upon the dealer to any great degree. There is no holdback. There is a quarterly bonus system to top dealers in the region. It sure does not come even close to 10K per car !



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