Help Request

[Michael Dowden]

Hi my name is michael dowden, i am a student at the university of plymouth. I am currently doing an induction project on the 2002 version of the ford GT. I must write a short presentation based on the outline i was given: "With an annual production rate of only 1500 and selling on average for $150,000 will ford ever make any profit out of the GT? If not, why not and why did they bother?".

My part of this project is to find out exact amount that it costs ford to make one of these cars, if any components used in this version of the ford GT have been used in and previously developed ford vehicles and the advantages and disadvantages of using these previously developed components.

If anyone could shed some light on my situation by posting even the slightest bit of information that i require or maybe a link that would help me find out it would be much appreciated. Ford will have made financial records during the development stage of the GT which would have every bit of info that i require because they would obviously need to predict the profit or loss margin for the car. Is it possible to get hold of anything like this? Maybe a component list for the production of the car with prices and such, maybe an audit form.

Thanks for reading and i hope to see some helpfull posts.
mike

[JimmyMac]

An Update from the (former)Ford GT Chief Engineer

[Mark Clapp]

Michael, I'm sorry I don't have any figures, but a lot of processes and technology that went into the new GT were "invented" along the way such as the "thermoforming" of the aluminum panels using high heat and air pressure so that a one-sided form could be used to achieve more complex shapes as opposed to simpler shapes from a normal two-sided press. Another aspect is that most of the car was designed on computer to meet the unbelievably quick timelines for production. The costs of these items were probably not even close to being recovered. The car was a statement and not a money maker. Others probably have more info.

[Rick Muck- Mark IV]

I believe it was Automotive News that had a cutaway with the supplier names for most components listed.

Yes, they did use existing components where practical, i.e. the steering column and hub is a Focus piece, several other items were "out of the parts bin", mostly small stuff.

And keep in mind that Ford did not get 150K per car, they got around 138K from the dealers who actually pay for the cars.

Did they make money? I doubt it, but they got millions of publicity value that could not have been bought.

[Cliff Beer]

The analysis of product line profit goes further than simply trying to determine the component costs and adding it all up (which is certainly not simple!). For most manufacturers, including major automobile companies, the profit analysis also includes an allocated share of corporate overhead for such items as legal, marketing, insurance, etc. This overhead allocation process is often highly controversial as product line managers are trying to show product line profit by minimizing overhead allocation - the allocation basis (direct salaries or square footage or some other logical basis) can dramatically swing the ultimate profit per unit. I would be surprised if Ford made it clear to the public how they chose to allocate overhead to arrive at a per unit profit/loss on the new GT. I don't want to be discouraging, rather just highlight that it's more than simply summing up the direct component costs.