MT
Agreed.
The number is preposterous to say the least.
There is not a snowball's chance in **** that vehicle could ever cost just $10,500 in 2016.
A few simple reasons why.
1. As someone who has been in the business of the manufacturing technologies efficiencies and forefronts since 1974, yes, while it is possible to produce that same vehicle more QUICKLY, you are discounting the cost of all that technology the companies MUST purchase in order to utilize it, and of course it requires additional plant and manufacturing space of all those robotic stations and the support units, which you did not have before either.
Then there is the cost of real estate and buildings and assembly lines for more advanced robotic assembly and finishing. That also is not inexpensive.
Last simple part of the equation is wages, and more importantly, benefits paid on top of those wages.
When one considers the companies will pass on all the additional TAXES and COSTS of those items to the consumer, the price of that vehicle has risen significantly.
Commodities. Like STEEL, Stainless Steel, ALUMINUM, GALVALUM, and GALVANIZED SHEET steel as well as carbon steel items. I remember when I could buy these things for UNDER 12 cents a pound.
They are MULTIPLES of that today because the makers of those commodities and their workers all have had COLAs and wage increases, equipment maintenance and replacing, raw materials price increases almost every year and in lots of years, three times a year,
Trust me, I have had it happen in my industries.
SO, there are multiple reasons why that same vehicle, or any other vehicle would cost significantly more in 2016 than in 1995.
INflation??? Alone? Partly. But lots of other contributing factors that not a whole lot of people are aware of unless they actually manufactured products out of various types of metals for a living over 40 years....
Just a little additional info on that subject....
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