End of Holden?

[planetdavo]

True Davo, but this doesnt explain how Holden were selling the VE/G8 for around $25K in the USD when the dollar was near parity....

I explained a big part of that just a few posts back. The US has many fundamental differences to Australia...and all over the world, many products are priced relative to the competition, rather than being a simple cost plus fixed margin equation no matter where you go. We also have absolutely no idea in internet forum land what sort of contra deals may have gone on behind the scenes with the cost of major components and so forth for US bound cars to make it all sweeter priced for the yanks....since stuff like engines, transmissions etc come from there to begin with...
Certain people are continually obsessed with the subject of the price of items between countries, but since you can't buy new cars direct from America, it's how a car is priced relative to it's competition in Australia that matters.
Check out what deals can be had on VE's since the GFC, and you'll realise that comparing RRP's is a crock of sh!t way to compare countries. We EXPECT to pay well under the RRP in Australia, whereas in the US, the dumbasses are prepared to pay ABOVE RRP for a popular model!
Would you like to upsize that order Sir...

[Martin_D]

I suppose the bottom line is a typical VE SS costs Holden probably close to $10K to build from the ground up. If the Yanks buy them for $25K then the network makes $15K. If the Aussies buy them for $50K then the network makes $40K. Countries that are used to paying more, keep paying more, as thats the way the world goes round

[planetdavo]

I suppose the bottom line is a typical VE SS costs Holden probably close to $10K to build from the ground up. If the Yanks buy them for $25K then the network makes $15K. If the Aussies buy them for $50K then the network makes $40K. Countries that are used to paying more, keep paying more, as thats the way the world goes round

You can always place your protest vote by not buying ANY car in Australia, and start riding your tricycle everywhere...
Why do you think around 50 different manufacturers all reckon they can make money selling only 1,000,000 new cars per year in Australia? Because our standard of living leads to cars being priced at the levels they are at! Most houses aren't "worth" remotely what they are priced at in Australia either, but they keep selling, because our standard of living makes (most of) them relatively affordable. Just as cars are.

[VYBerlinaV8]

You can always place your protest vote by not buying ANY car in Australia, and start riding your tricycle everywhere...
Why do you think around 50 different manufacturers all reckon they can make money selling only 1,000,000 new cars per year in Australia? Because our standard of living leads to cars being priced at the levels they are at! Most houses aren't "worth" remotely what they are priced at in Australia either, but they keep selling, because our standard of living makes (most of) them relatively affordable. Just as cars are.

Have you looked at the cost of building a new house these days? Materials and labour cost a shedload.

Also, I find it hard to believe Holden would be making much profit selling large cars at around $30k. If they were they wouldn't need to have their hand out to goverment.

[Evman]

If they were they wouldn't need to have their hand out to goverment.

Wouldn't you take free money if people were offering it?

[planetdavo]

The price of the house is rarely the greatest expense of the overall purchase. The cost of the block of land is. It people couldn't afford these vast prices for land being paid, they wouldn't be that dear.

[sjhugh]

We EXPECT to pay well under the RRP in Australia, whereas in the US, the dumbasses are prepared to pay ABOVE RRP for a popular model!
Would you like to upsize that order Sir...

Having lived in the US and still having much of my family there I can say this fits in nicely with your ‘SNIFF, SNIFF, I SMELL FRESH BULLSHIT’ tag.

‘Dumbass’ Yanks don’t pay RRP anymore than we do, in fact I would say they beat the price down better than most Aussies have ever learnt too. Yanks are pretty good at loudly standing up for themselves.

For the most part, we pay more for goods and services in Australia because we are willing to.

.

[Martin_D]

Having lived in the US and still having much of my family there I can say this fits in nicely with your ‘SNIFF, SNIFF, I SMELL FRESH BULLSHIT’ tag.
'Dumbass’ Yanks don’t pay RRP anymore than we do, in fact I would say they beat the price down better than most Aussies have ever learnt too. Yanks are pretty good at loudly standing up for themselves.

This guy knows. Dealing extensively in the US auto market I can tell you without blinking that the US has the most agressive discounting structure I have ever witnessed. Publicly companies quote MSRP prices, however the majority of them have a price matching deal which leads to massive discounting and cost slashing for a single sale. Its actually too agressive in most instances and invariably does in a lot of small business there. The US is the place 'We wont be beaten on price' comes from. Pays to know what you are talking about before you post

[Martin_D]

You can always place your protest vote by not buying ANY car in Australia, and start riding your tricycle everywhere...

Wrong. Bought a brand new GTR straight out of Japan before they were released here, saved $40K over the Aussie rip and got a higher spec car to boot
You can stick to your tricycle, those of us that understand the industry can save the money by not funding the Aussie 'lets roll the mugs' car-sellers cartel
The amount of profit being made on new cars sold here is simply staggering which makes constant taxpayer handouts even more bewildering.
'Money for Jam' its called

[planetdavo]

Having lived in the US and still having much of my family there I can say this fits in nicely with your ‘SNIFF, SNIFF, I SMELL FRESH BULLSHIT’ tag.

‘Dumbass’ Yanks don’t pay RRP anymore than we do, in fact I would say they beat the price down better than most Aussies have ever learnt too. Yanks are pretty good at loudly standing up for themselves.

For the most part, we pay more for goods and services in Australia because we are willing to.

.

You've said your opinion, I've said mine. We'll just have to take your word on it that you're not full of the smelly brown stuff hey.
And yes, there are PLENTY of stories over the years about yanks paying well above RRP for a desirable new car. Out here, we tend to go on a waiting list instead.
Perhaps you lived in a cave or something, and missed some of what goes on...

[Martin_D]

And yes, there are PLENTY of stories over the years about yanks paying well above RRP for a desirable new car. Out here, we tend to go on a waiting list instead.

So what? Punters were paying $20K over list to get their hands on a new STi when they were first released in Aus.
The behaviour of a few enthusiasts is hardly a reflection of the overall industry

[planetdavo]

So what? Punters were paying $20K over list to get their hands on a new STi when they were first released in Aus.
The behaviour of a few enthusiasts is hardly a reflection of the overall industry

Perhaps you can give us a second or a third genuine example whilst you're "on a roll" hey Martin...
I've given several reasons earlier why US cars are often lower priced than Aus cars. You and others can bat off over your own versions of the story if it makes you chubby...

[Martin_D]

You and others can bat off over your own versions of the story if it makes you chubby...

US cars are lower priced, as the customers there wont be taken advantage of. The proof is that the same Commodore built in the same Aussie plant that sold much lower volumes in the US was some 40% cheaper than when sold in Australia.
While big fat margins pay your handsome salary Davo, they do little for the rest of us.
Case closed

[VYBerlinaV8]

Wouldn't you take free money if people were offering it?

There's a big difference between taking "free money" and putting your hand out with a sob story.

[VYBerlinaV8]

The price of the house is rarely the greatest expense of the overall purchase. The cost of the block of land is. It people couldn't afford these vast prices for land being paid, they wouldn't be that dear.

I'd disagree with this. I have built a house (and currently own quite a few others), and the cost of the building is generally more than the land you build on. Perhaps things are different where you live?