Bimmerfest - BMW Forums - View Single Post - X3 costs an estimated $14,000 to make
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Old 04-24-2008, 01:04 PM
S93D S93D is offline
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X3 costs an estimated $14,000 to make

Analysts also estimate that BMW's upfront costs, for defraying Magna's tooling and startup expenses, will be only about $100 million, rather than the estimated $500 million it would have cost to expand BMW's capacity. Merrill Lynch analyst John Casesa estimates BMW will pay Magna $14,000 for each X3 built

So I figure it's roughly $500 in tooling costs ($100M divided by number built), maybe $2,000 in development costs so it costs BMW $16,500 to make. So they have $20,000 for expenses, advertising costs, warranty costs, maintanence, etc. That's not bad. If their reputation were not so well regarded and had to sell the vehicle for $28,000 then it would be harder to make a profit.

I was a little surprised at the $14,000 figure. My previous guess was that it cost a bit over $20,000 to make.
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