how much does cost cutting really save?
Thread Starter
Lexus Fanatic
Joined: Dec 2006
Posts: 6,806
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From: californication
how much does cost cutting really save?
i wonder how much money car companies really save from cost cutting.
compared to the retail price, it doesn't seem like much.
i noticed today that the camry has only 4 LEDs in the 3rd brake light.
it looks ugly ridiculous. How much is toyota saving by putting 4 fewer leds on there? that must break the bank...
it just seems they cut the smallest worthless things.
compared to the retail price, it doesn't seem like much.
i noticed today that the camry has only 4 LEDs in the 3rd brake light.
it looks ugly ridiculous. How much is toyota saving by putting 4 fewer leds on there? that must break the bank...
it just seems they cut the smallest worthless things.
Thread Starter
Lexus Fanatic
Joined: Dec 2006
Posts: 6,806
Likes: 7
From: californication
that's pennypinching when compared to toyota's wealth.
the camry brake light has 4 leds spaced out, with huge gaps between each led. it just looks odd.
they don't have to do that just to save a dollar.
some little things make you go
taking penny pinching to the extreme
the camry brake light has 4 leds spaced out, with huge gaps between each led. it just looks odd.
they don't have to do that just to save a dollar.
some little things make you go
taking penny pinching to the extreme
Lexus Champion
Joined: Sep 2006
Posts: 2,025
Likes: 0
From: MIchigan
it just seems they cut the smallest worthless things.
What really POF about Toyota's after 2005.
1. Except for Highlander, Avalon and Land Cruiser Toyota no longer covers the seat anchors on their vehciles. This looks like ***** IMO
2. Except for Highlander and Land Cruiser Toyota no longer puts the seat adjustable icons on the power seat controls. It just looks better
3. Except for Land Cruiser...Toyota does not light power window and lock switches for their doors or mirror control but they do with Lexus.
4. Land Cruiser/Lexus 100 series used to paint the hood/fuel release two tone colours...no longer do that.
5. Most Toyota/Lexus models used to come with double stitched leather seats but no more.
Last edited by bitkahuna; Aug 8, 2008 at 11:49 PM.
Pole Position
Joined: Jan 2006
Posts: 2,816
Likes: 7
From: UK
Every car company has to look at every aspect of production and component costs on a continuous basis. If they didn't they'd very quickly become uncompetitive. Suppliers are under pressure to reduce the price of the parts they supply on a year on year basis. If you can save only 1c on every component in car multiplied by the vast number of parts multiplied by the millions of vehicles produced you are looking at not inconsiderable sums. If companies hadn't done this through history you wouldn't be able to buy a vehicle for under a $100,000 today.
Lexus Champion
Joined: Oct 2002
Posts: 11,204
Likes: 12
From: The Woodlands, TX
i wonder how much money car companies really save from cost cutting.
compared to the retail price, it doesn't seem like much.
i noticed today that the camry has only 4 LEDs in the 3rd brake light.
it looks ugly ridiculous. How much is toyota saving by putting 4 fewer leds on there? that must break the bank...
compared to the retail price, it doesn't seem like much.
i noticed today that the camry has only 4 LEDs in the 3rd brake light.
it looks ugly ridiculous. How much is toyota saving by putting 4 fewer leds on there? that must break the bank...
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Joined: Jul 2006
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From: MA
The flip side of this would be for them to raise the price of every Camry by $1. I doubt they would lose even 1 sale if they did that
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Lexus Fanatic
Joined: Aug 2006
Posts: 7,468
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From: Vancouver, BC
there are a few reasons toyota is doing well; anytime some1 / a company has a lot of money, there is a way they made that happen
we had a thread about this a while back with the overall cheapening of cars
we had a thread about this a while back with the overall cheapening of cars
Lexus Fanatic
Joined: Oct 2003
Posts: 94,702
Likes: 290
From: Virginia/D.C. suburbs
What's happening is that car companies are being forced to put so much equipment on their cars, both from consumer demand and from Government safety/emission regulations, that they are cost-cutting on the things that are not regulated, like trim, plastics, fit/finish, etc.....hoping people won't notice. The average person, in many cases, doesn't, but we, of course, do, because we are car buffs who actually LOOK at the cars we review and drive.
It doesn't work that way from an accounting standpoint. They don't just pass certain parts through at no profit. The price of the car to the dealer is the total cost of parts and labor multiplied by some gross profit margin and the dealer in turn marks it up to the manufacturer's retail 'suggested' price.
Lexus Fanatic
Joined: Oct 2003
Posts: 94,702
Likes: 290
From: Virginia/D.C. suburbs
However, a growing trend (and one that I like) is the policy of no-haggle discount dealing.....usually portrayed as an "Internet" price. Dealerships advertise a no-haggle, no B.S. discount and then stick to it, with no additional charges except tax and tags (the Fitzgerald dealer chain in the Washington, DC area is superb at this). I have sat through several new-car deals with friends and ex-coworkers with this system and it works very well.
Last edited by mmarshall; Aug 9, 2008 at 07:36 PM.
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