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kawashima
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Joined: 03 May 2005
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PostPosted: 14:35 - 05 Feb 2010    Post subject: cost of motorcycle Reply with quote

I'm really bored and wondered "how much does bike makers earn per bike". I'm not good at reading them but I looked at yamaha 2007 IR and it was written,
<Motorcycle segment>
Sales 1056.2 billion yen-> /4,997,000 = 211,367yen(£1,509)
Operating profit 63billion yen-> /4,997,000 = 12,607yen(£90)
Operating profit ratio 6%
number of sold bikes 4,997,000 bikes

So the average price was £1,509 and they earned £90 per bike.

What I wonder is...
Material cost of bike must be far cheaper than car. A bike is less than 200kg while a car is more than 1000kg. What makes a bike cost so expensive? if the ratio was same for £9,500 1000cc SS too,
£9,500 * 6% = £570 they earn only £570 per bike?
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Kickstart
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Joined: 04 Feb 2002
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PostPosted: 14:55 - 05 Feb 2010    Post subject: Reply with quote

Hi

Think a lot comes down to sales volumes and fairly fixed costs. Such as tooling and development costs. With cars the FAR greater sales volumes means these costs can be divided by a larger number of customers.

If you make 5m cars then even a tiny extra cost per vehicle adds up quickly. With a bike there is less need to save tiny amounts of money as a few pounds here and there over 10000 bikes is far less of an expense.

As an aside, many years ago when we bought a Cagiva Freccia we were told that the price from the factory was ?1750. On the road price was ?3k. So over 2/3 of the price was tax, transport costs, importers / dealers profit margins / etc.

All the best

Keith
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c-m
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Joined: 12 May 2006
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PostPosted: 17:32 - 05 Feb 2010    Post subject: Reply with quote

I was about to say, it all comes down to economies of scale.

I'm amazed they sold that many bikes to be honest.

Though i did see a clip of Honda's high tech factory churning out VFR1200 apparently they finish one ever 90 seconds. Insane.

The plant look pretty high tech, imagine how much all that costs.
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kawashima
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Joined: 03 May 2005
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PostPosted: 13:48 - 06 Feb 2010    Post subject: Reply with quote

c-m wrote:
Though i did see a clip of Honda's high tech factory churning out VFR1200 apparently they finish one ever 90 seconds. Insane.

The plant look pretty high tech, imagine how much all that costs.

I found the video you mentioned.
It looks interesting than working in toyota line who attaches seats only. But this VFR line looks more like how they made NSX.
https://www.youtube.com/watch?v=djWpWVnFz8I
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c-m
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PostPosted: 14:47 - 06 Feb 2010    Post subject: Reply with quote

Here's the Triumph factory, not quite up to the Japanese standard.

https://www.youtube.com/watch?v=kvEayusTgzw
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