Hey I guess Honda doesn't have any business sense
10-26-2006, 09:19 AM
#1
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Hey I guess Honda doesn't have any business sense
Because the dealer told me that Honda loses money on every S2000 it sells. 
Yeah... that's why they've been running it for 9 years!
Does any one know what kind of profit margin we're looking at on these cars? I remember some one posted all the MSRP and dealer prices and how much they're making on top for these cars. I had trouble finding it on the forum.
Thanks for any help.
Yeah... that's why they've been running it for 9 years!
Does any one know what kind of profit margin we're looking at on these cars? I remember some one posted all the MSRP and dealer prices and how much they're making on top for these cars. I had trouble finding it on the forum.
Thanks for any help.
10-26-2006, 09:44 AM
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10-26-2006, 10:15 AM
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I wouldn't doubt that Honda doesn't make money on the S2000, its supposed to be Honda's halo car, but its a low volume seller, hand assembled solots of manhour time, and has no advertising budget.
One reason Honda is still making them is to amortize costs maybe?
I have no idea what it costs to make an S2000, but if I look at a $26k Miata, where is Honda spending more money? Engine? LSD? Aluminum hood? Its sure not the stereo or speakers!
One reason Honda is still making them is to amortize costs maybe?
I have no idea what it costs to make an S2000, but if I look at a $26k Miata, where is Honda spending more money? Engine? LSD? Aluminum hood? Its sure not the stereo or speakers!
10-26-2006, 10:17 AM
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It certainly would not surprise me if the S2000 was initially selling at a net loss to Honda for the first few years. But I'd have to think that they should be back to at least break-even on it by now, in its 6th full model year...
Honda was selling the Insight at a rather large net loss. And I think the Civic Hybrids are also still loss-leaders.
Andrew
Honda was selling the Insight at a rather large net loss. And I think the Civic Hybrids are also still loss-leaders.
Andrew
10-26-2006, 10:20 AM
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[QUOTE=ipimpgarland,Oct 26 2006, 12:44 PM] http://www.edmunds.com/new/2007/honda/s200...929/prices.html
MSRP
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10-26-2006, 10:22 AM
#7
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This is not uncommon in the automotive industry. NSX, Viper, Carrera GT, Ford GT, heck even the srt-4 are not meant to be profit makers. In fact they sometimes lose money selling these cars. What they are selling is image, not the car.
Many buyers pick up neons because its accosiated with the same company that produces the Viper...same thing goes for Civics and Altimas and etc. The Halo cars are often more of an advertising tool for the rest of the line up.
Same applies to video game consoles....companies such as Microsoft and sony lose money everytime they sell a console. But its made up ten fold by the games the customer buys.
Many buyers pick up neons because its accosiated with the same company that produces the Viper...same thing goes for Civics and Altimas and etc. The Halo cars are often more of an advertising tool for the rest of the line up.
Same applies to video game consoles....companies such as Microsoft and sony lose money everytime they sell a console. But its made up ten fold by the games the customer buys.
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10-26-2006, 11:29 AM
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It goes deeper, too, because the S2000 is made in the same factory that the NSX was, so who knows how they viewed the financials of amortizing the factory vs. closing it vs. not applying it to the S2000 if it was paid for by the NSX, etc etc. Unless they told us, it would be very hard to figure out whether Honda figures it made money or not on the S200 when you consider ALL the different factors that could be considered, or not considered, depending on how they expense/apply them.
10-26-2006, 11:31 AM
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Originally Posted by Saint_Spinner,Oct 26 2006, 02:22 PM
Many buyers pick up neons because its accosiated with the same company that produces the Viper...same thing goes for Civics and Altimas and etc.
10-26-2006, 12:32 PM
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Originally Posted by Saint_Spinner,Oct 26 2006, 01:22 PM
This is not uncommon in the automotive industry. NSX, Viper, Carrera GT, Ford GT, heck even the srt-4 are not meant to be profit makers. In fact they sometimes lose money selling these cars. What they are selling is image, not the car.
Many buyers pick up neons because its accosiated with the same company that produces the Viper...same thing goes for Civics and Altimas and etc. The Halo cars are often more of an advertising tool for the rest of the line up.
Same applies to video game consoles....companies such as Microsoft and sony lose money everytime they sell a console. But its made up ten fold by the games the customer buys.
Many buyers pick up neons because its accosiated with the same company that produces the Viper...same thing goes for Civics and Altimas and etc. The Halo cars are often more of an advertising tool for the rest of the line up.
Same applies to video game consoles....companies such as Microsoft and sony lose money everytime they sell a console. But its made up ten fold by the games the customer buys.