The 10-year story of what has happened to your automobile dollar
An average car of 10 years ago – Price, delivered to the customer: $1,888
Cost of labor: $531
Materials & services: $748 (much of it labor cost)
Wear and tear on the plant and tools: $35
Profits, after taxes: $221
Labor cost was 28 cents out of every $1 of the sales price. Materials and services, including advertising, took 40 cents. Net profits represented 12 cents.
An average car of today – Price, delivered to the customer: $2,833
Cost of labor: $916
Materials & services: $1,204 (much of it labor cost)
Wear and tear on the plant and tools: $90
Profits, after taxes: $161
Labor cost is now 32 cents out of the sales dollar. Materials and services have gone up to 42 cents. Net profits are down to 6 cents.