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Date:         Wed, 6 Sep 2000 03:36:00 PDT
Reply-To:     Mark Dorm <mark_hb@HOTMAIL.COM>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Mark Dorm <mark_hb@HOTMAIL.COM>
Subject:      Re: Thinking swap? Engine options are only half the story...What
              ...
Content-Type: text/plain; format=flowed

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

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