Ron Jeremy said:
I did some research back in the late 90's and I found out that auto manufacturers make BIG profits on trucks. For example, a 1999 Jeep Grand Cherokee only costs Chrysler $15,000 to $17,000 to build. They then turn around and sell it for $32,000 to the dealer and the dealer turns around and sells it for $35,000 to $38,000 to the consumer. That's too much of a markup that the auto manufacturers have for an SUV like that. That's why all cars are expensive. Auto manufacturers are selling them for too much to the dealer and the dealer is selling them too much to the stupid consumer. A decent car should not cost anymore than $14,000. But noooooo. The manufacturers have to gouge the dealer and the dealer in return has to gouge the consumer. That's not fair. That's nothing more than just plain robbery.
Ron,
You may be right about those figures as production costs. You're missing the costs of research & development, governmental testing requirements, manufacturer overhead, marketing, and warranty liability expenses.
You CAN buy a decent car today for around $14k. It won't be american made, it won't have much power, it won't be real comfortable for a long trip, but it will be a decent car to commute around town and will probably have a 10 year/100,000 drivetrain warranty. The Hyundai's & Kia's fill that inexpensive place in the market. Most people just want more.
During your research, I'm sure you found that today's cars are not much more expensive than the cars of the 60's, when taking inflation and economic conditions into account. The cars of today are, however, much more powerful, fuel efficient, faster, safer, and convienient than cars of the past.
I don't think anyone is gouging anybody, Anyone who has owned automobile stock over the last 20 years, has seen little return on their investment. American automobile companies are hemoraging cash in an attempt to provide consumers with a product that they want, while keeping costs minimized.