Development costs...
Thread Starter
Burning Brakes
Joined: Jul 2008
Posts: 888
Likes: 50
From: Oklahoma City Oklahoma
Development costs...
Okay guys, I know there are some smart folks on the forum. Any guesses as to the developement costs for the C8. How munch money did it take to go from an idea to a car for sale on the dealers lot. Design, testing, development, equipment, manufacture, training the whole ball of wax. There were years of empolyee salarys and lots more. I know nothing of real business but my guess is 80 million.
Intermediate
Joined: Jul 2019
Posts: 26
Likes: 7
From: Marin County, CA
80 mil is a drop in the bucket, suspect it's somewhere north of 1 billion to bring it to market, would be an interesting number to contemplate, someone in the industry will give us an educated guess?
Le Mans Master
Joined: Jul 2015
Posts: 6,223
Likes: 1,700
From: Northern California
St. Jude Donor '15
Well, in 2015 they spent $439 million to upgrade the paint shop, then in 2016 they spent $290 million to upgrade vehicle operations in Bowling Green for the c8. They just announced the addition more than 400 hourly jobs to build the c8 two shifts a day.
Its been a really big investment for them.
Its been a really big investment for them.
Melting Slicks
Joined: Oct 2016
Posts: 2,873
Likes: 2,505
Ten years ago the minimum cost to develop a new model was reported to be at least a billion dollars. Since there were very few carry-over parts used and a completely new concept developed it would be a good guess the billion dollar mark was easily surpassed.
Melting Slicks
Joined: Aug 2004
Posts: 2,149
Likes: 1,349
From: Big D Dallas TEXAS
Okay guys, I know there are some smart folks on the forum. Any guesses as to the developement costs for the C8. How munch money did it take to go from an idea to a car for sale on the dealers lot. Design, testing, development, equipment, manufacture, training the whole ball of wax. There were years of empolyee salarys and lots more. I know nothing of real business but my guess is 80 million.
Last edited by fasttoys; Aug 6, 2019 at 09:27 AM.
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Race Director
Joined: Apr 2003
Posts: 19,348
Likes: 654
From: Tampa, Florida
Post #8.. I remember reading that.
If first year C8 average price is $75K and they sell 30K units GM will have $2.2billion in revenue and $700M-ish in profit from all sources. It'll take 2 years max for C8 to pay for itself.
If first year C8 average price is $75K and they sell 30K units GM will have $2.2billion in revenue and $700M-ish in profit from all sources. It'll take 2 years max for C8 to pay for itself.
Last edited by jim2527; Aug 6, 2019 at 10:30 AM.
Pro
Joined: Sep 2006
Posts: 608
Likes: 259
From: Louisiana
I don't think the development costs are anywhere near a Billi. But certainly in the hundreds of millis.
Line, labor and tooling costs are not research or product development. Nor is production cost. But yeah, the total spend on C8 production will be in the billions.
Line, labor and tooling costs are not research or product development. Nor is production cost. But yeah, the total spend on C8 production will be in the billions.
Melting Slicks
Joined: Nov 2018
Posts: 2,096
Likes: 1,024
From: AA/Metro Detroit
If you think that is a lot, a modest 200k sales volume over the life at the presumed MSRP of 60k would gross $12B.