Quote:
Originally Posted by TomcatViP
This is wrong. There is way enough price margin to conceive and built completely most of the products on site in so called "rich" countries.
The only things we lack is brain & guts.
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Perhaps I overstated the 'only way our economy/companies survives' thing. So, fair dues there.
I never said companies don't build products 'on site' as you say. If that is part of their product's core value then making it in Canada, or Germany, or where ever adds to their product's saleability. That doesn't make it cheaper, though. Doesn't necessarily make it more expensive either, but make no mistake - they're not manufacturing something in Germany because of some altruistic 'German parts made by Germans for Germany!' creed. It's because the company and its shareholders see the added value that putting that sticker on their product carries.
Again, speaking from experience, I would wager that a company like Porsche will put out a tender for pricing once every three years or so for parts manufacturers from all over the world to bid on their contracts for manufacturing. They will take the pricing and evaluate it, associating a certain 'added value' to making the part domestically. Very likely, making parts domestically carries with it government subsidies and other benefits to things such as taxes and employment insurance premiums.
Luxury brands have more margin to work with, certainly, and that allows them to source materials and labour that costs more and still profit. But their overhead is often just as high as other companies that make their profits by selling a gajillion units. Porsche sells a lot of cars, but not as many as Ford. So their margin is higher, but it has to be to keep the company going.
None of this is simple enough to really be sorted on a flight sim forum
