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From a PR email:

Car production costs increased from $50 dollars to $679-$764 per unit from 2021 to 2022 – an average increase of 1358%

Don’t need to pay any more attention to these idiots then, do we?

13 thoughts on “Idiots”

  1. ‘https://www.banklesstimes.com/news/2022/10/25/car-production-costs-rose-by-1358-percent-from-2021-to-2022-due-to-the-energy-crisis/’

    I must confess the logic of the lady’s rant quite escapes me.

  2. “Nellius Mukuhi….is a cryptocurrency investor and journalist who has been in the nascent space since 2018. She is a seasoned writer who loves to travel….”

    Fortunately for the planet, Nellius’ travelling has (I assume) been restricted to all those places she can visit on foot. Thus we can’t point the finger at her for exacerbating the Energy Crisis.

    Having said that, if the ‘nascent space’ she currently inhabits is anywhere near ‘outer space’, then I for one am happy for her to stay there, perhaps slowly orbiting the planet like one of Mr Musk’s satellites…..

  3. Perhaps it’s time she packed her trunk and said goodbye to the circus as the only discernible nascent space is between Nellius’s ears.

  4. Most cars spend a few hours (up to 24?) on the line being built, so the actual build cost is shopfloor rent, energy, labour for that few hours. However I can’t imagine it being as low as $50 in 2021.

  5. @Boganboy
    That $260 Model T is equivalent to $4400 in today’s dollarettes. Manufacturing labor cost is usually between 20-35% of gross. The Bureau of Labor Statistics shows that this has been fairly flat since the 1960s. I don’t have data going back to 1925, but I suspect that doesn’t change. So $50 labor cost could not have been true no matter how you slice it, especially since Ford was paying an above average wage.

  6. Not to rush to the defense of poorly researched articles, but the author does link to another reference : https://news.am/eng/news/724562.html

    That article says pretty much the same thing, but I think in the context, maybe they meant fuel costs? $50 of electricity/natural gas in Pre-Covid to $679-$764 per unit now? Maybe? Trying to be generous here.

    Would that make sense? I mean any NG foundry costs must have gone through the roof.

  7. Yes, APL, I’m fairly sure she’s referring to energy costs, though the article is far from clear. A more sensible way of putting it would be that the cost of energy needed to produce a car has increased by ~$700, which would presumably mean an extra $1,000 or so on the sticker price – a rise of a few percent when inflation is ~10%.

  8. Leaving aside the incomprehensibility of the assertion,surely the figure of 1358% is wrong? It must (I suppose) come from the quoted $679, which is a rise of only 1258%. (I claim the Pendantry Prize.)

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