When you aim for Target prices you start to get Target quality

>From: Heath Vogt <RallyXer@AOL.COM>
>
>In a message dated 9/5/00 8:54:59 PM Central Daylight Time,
>mark_hb@hotmail.com writes:
>
> > They have to consider
> >  their market. BMW, Mercedes, and Porsche have vehicles made for people
>with
> >  more money, so those companies can spend more money engineering their
> >  engines. Volkswagen is a car for the masses, for the people. If they
> >  engineered their engines to the same degree, then the masses could no
>longer
> >
> >  afford their Volkswagens.
>
>
>You also have to consider the fact that VW sells alot more of any given
>engine vs. BMW, Mercedes, and Porsche.  How many engines does it take to
>have
>a return on investment?  If you invest 6.5 million on an engine, and only
>make 20,000 a year, that's an expensive engine, invest 6.5 million on an
>engine design and make 250,000 a year (how many 2.0L engines does VW make a
>year world wide???), that doesn't seem so bad.  Porsches aren't expensive
>only because of the performance and prestigue, they're expensive because of
>the low volume (price a Ferrari or Lambo lately, VERY low production
>#'s)...
>spread out the R&D over more cars, the price per car goes down (thus all
>the
>engine sharing between the branches of GM, or Ford ect).
>
>Heath

_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.

Share information about yourself, create your own public profile at
http://profiles.msn.com.