Superformance GT40 MK11 & Coupe retail prices

Please see MANUFACTURER'S ANNOUNCEMENTS
(Jimmy Price of Hi-Tech Auotomotive & Superformance)
for the retail prices, excluding engine and gearbox, of the new GT40 Mk11 and the Superformance Coupe.

Andre 40
 
I know there are responses on the thread listed in the
Manufacturer's section...but this is such a huge event
that I thought it deserved to be discussed in the main
section.

If Superformance can truly sell accurate mono turnkey-less GT40's all painted/assembled like their Cobra in the US
for $ 50k, IMHO that will make a HUGE change in the market for these replicas. Not only will they be swamped
with new Ford GT wannabees...but their competition will
take a major hit in sales.

Of course until cars arrive in the States and the price
is final, nothing is certain. Do most of you agree?
Or am I overreacting?

MikeD
 
ONLY TIME WILL TELL HOW CREDABLE THESE PRICES ARE. IF IT IS ACCURATE THAN WE WILL SEE ALOT MORE OF OUR FAVERATE CARS. /ubbthreads/images/graemlins/confused.gif /ubbthreads/images/graemlins/confused.gif /ubbthreads/images/graemlins/confused.gif
 
...until people look at what an equally accurate engine & transaxle will add to the base price /ubbthreads/images/graemlins/shocked.gif
 
Steve

I think there are many who want the MK II body style,
but don't need the big block power (and cost).

Andre also indicated that MK I's would follow...so they'll
have all bases covered. Remember...these will include a real steel roof! Holy GT40 Batman!

MikeD
 
If I'm very, very quiet...


...I think I can hear the value of my GTD dropping.


Good thing I bought it because I loved it and not as an investment. ;-)
 
This can have a major impact on the GT40 market. Look at what is happening to the Cobra market. Who would buy a turnkey minus Superformance cobra for 35k when they could buy a Shelby car for 39k. And who is going to buy a Shelby car when you can get a Kirkham car with an aluminum body for the same price? Is Superformance getting even? The buyer benefits in this market. The longer we all wait, the cheaper and more accurate these cars become.
 
It's impossible for me to believe the GT40 will sell in the U.S. for less than the current price on the Coupe. But I'll be happy to admit I was wrong if in fact it's in the 50K range (under 60K) when it arrives. Looks to be a fantastic car.

TT
 
Especially with the US dollar continuing to weaken, I really doubt a monocoque turnkey-minus could be sold in the US for $50,000 at a profit. Add a long distribution chain and the price goes higher.

I also wonder how long the US regulations will continue to allow importation of turnkey cars with 40-year-old safety and emissions standards.
 
Right now the South African Rand is $7.40 to our dollar. So it's not to hard to see why there would be a huge profit.
I belive the average income for SA converts to about $16,000 U.S. dollars per year. Here in the U.S. the average is about $32,000

Hersh /ubbthreads/images/graemlins/smile.gif
 
Hersh

Agreed...it's the lower cost labor in SA that makes CAV/Superformance competitive, even with distribution costs.

Mark...PLEASE don't tell them! Hopefully we can keep a good thing going a little while longer!

As far as the Pete Brock coupe costing more than the GT40,
one can only ask Mr. Price. I'll speculate that he saw
the coupe as an even lower volume item than the GT40
and spread his development costs over far fewer vehicles.
Plus, I get the impression he wanted to make a BIG SPLASH
in the GT40 market. Depending on final price...he could!

MikeD
 

Rick Muck- Mark IV

GT40s Sponsor
Supporter
I think (and this is just my opinion, I have not spoken to Jimmy about this) that the reasons that the 40 will sell for less than the coupe include:
GT-No A/C standard
Coupe A/C standard
GT- No leather
Coupe- Leather
Coupe- power windows and so on.....

Plus the GT will be stamped on production tools and I will assume although it is a complicated build, the materials cost will be lower (although the tooling cost is MUCH higher) I assume they are looking for a large enough run to amortize the investment. And yes, perhaps Jimmy will take a short profit to generate market and bring further awareness of Hi-Tech's abilities to the market.

Do not be surprised when one day Hi-Tech is producing and assembling low volume vehicles for major auto manufacturers. Porsche has already done this with the Boxster, many of them are assembled by Valumet (sp?) in Finland....yes, that's right, not Stuttgart but FINLAND!!
/ubbthreads/images/graemlins/shocked.gif

and I want a MK I, maybe silver, maybe red....so many choices! /ubbthreads/images/graemlins/confused.gif

Also someone asked about the transaxle, they will offer a T-44 clone but I also assume you can use a Getrag with a small block or a ZF. The T-44 will be required for a real big-block but a potent small block will not need the torque capacity of the T-44, plus you will only have 4 speeds with the T-44.

Rick /ubbthreads/images/graemlins/grin.gif
 
The South African Rand has lost nearly half its value vs the US dollar over the last 2 years (from around 11.5 to a recent low of just over 6 - see chart ). At some point, this has to get reflected in prices of the South African made cars.

Wait, I said that wrong - the Rand has actually GAINED value vs the dollar as the dollar has weakened. In any case, a dollar buys fewer Rands than it used to, so if the SA companies are paying people in Rands, they are going to need more dollars to equal the same number of Rands...
 
Exactly, Steve. And based on the chart that you posted, today's $50,000 South-African-built GT40 turnkey minus could have (theoretically) been had for less than $30,000 in early 2002.

If they can do this and make money and get more people interested in GT40s then it's good news. But I'll believe it when I see it.
 

Rick Muck- Mark IV

GT40s Sponsor
Supporter
I certainly understand the beating the dollar has taken to the Rand...once upon a time the KrugerRand was the "Premier" currency in the world. And then they were worth nothing (relativly)however the cost of labor and materials are still very attractive compared to, say, California! I understand that Hi-Tech pays above the average for the skill levels and is a sought out place to work. A business associate visited two years ago and came away very impressed with the workers and the product turned out.

Another factor to consider is that Jimmy does not hesitate to invest in tooling and equipment. Where a small volume producer would, say, arrange for 100 upright castings and then machine them a couple at at time on a manual machine, Hi-Tech has CNC machines that will turn out hundreds in the time the manual sstem does a couple. They can afford to inventory the parts until needed where many small producers cannot do this. When you automate, you really only spend the money once.

Small volume products can be produced via high labor content OR high tooling content. Most small volume manufacturers do not the capacity or cash to tool for production so they must invest high volumes of labor to produce a given piece, recovering their cost upon sale of the product. The choice is investing in tooling and equipment or in higher labor content.

CAn they sell the car for this price? yes, but I think it will "creep" before it arrives. Still should be a great value.

Rick /ubbthreads/images/graemlins/grin.gif
 
Hi All,

The prices quoted, $50000 for the GT40 and $60000 for the Coupe are retail prices, less engines and gearboxes. There are no further duties or add-ons.

The cars are complete to the last detail. Just pay extra for engine and tranny and off you go. Depending on choice, typical cost on the road could be about $75 000 for the GT40, which figure Ron Earp quoted several months ago as typical for any GT40.

The reason the Coupe is more expensive is, as Rick (MK 1V) correctly said, is more luxury equipment, ie air-con, leather trim and power windows. Also the Coupe is a completely knew car, designed from the ground up with full support of American industry heavy weight, ex-Ford suspension guru, Bob Negstead, with access to Roush engineering facilities and of course original designer, Pete Brock. As it will not be a volume seller there are mega buck development costs to be ammortised.
The other day the car was timed at over 200 mph!

On the other hand the GT40 is simply a known and developed car replicated, therefore much lower development costs.

Production for the GT40 is currently pegged at eight per month bearing in mind that the Cape Town facility is in the petty cash league compared with the giant parent company in Port Elizabeth. There will therefore be no droves of Superformance GT40s heading for the US to give the other manufacturers a hard time. In previous postings I've used the term, 'It doesn't scratch the surface'. I use it again with the regard to the new GT40. Also quoted before 'Room for everybody'.

There will be two GT40 MK11s - an authentic right hand drive version with right hand gear shift and a left hand drive version with centre shift. For the latter air-con will be optional.

Jimmy is planning to build his own 5-speed transmission, but not a copy of any other make, ie T44. South African, Andre Verwey, who founded Gemini Transmissions in the UK and sold to the Ricardo Group, recently returned to South Africa and will be working with Jimmy on the project. With Andre's vast experience in this field Jimmy will have a good partner to drive his tranny forward.

The world being as small as it is, Andre bought the Autospray Lola T210 (referred to in earlier postings) from Mike Hailwood at the end of the 1970/71 Springbok series and raced it for two seasons. The car is now in Sweden.

Hersh will have his fans and circle of supporters for his Roaring Forties and will sell as many as before. Likewise ERA and others. If you are a sworn Toyota fan no ways you'll buy a Honda even if it's cheaper.

I greatly admire Rick Chattell's (cavuk) attitude when he compliments a so-called opposition company. I met him briefly when he was in Cape Town just to say Hi. Rick is an army man with Falklands war experience and I gather that he was awarded an MBE (Member of the British Empire). He's therefore no doubt a confident person and confident in his own product. I quote again, 'I march through life to the sound of my own drumbeat'.

There have been myths about why South Africa can supply competitively priced products and it's thought this is possible because of cheap labour. Not true, the strong Labour Unions ensure fair wages and in fact in some sectors South African productivity is regarded as of the worst in the world particularly when compared with Japan, Taiwan and Korea. It's simply all down to a weak SA rand, currently at seven to the US dollar. In 1973 the position was exactly the opposite when one SA rand bought $1,18. HAD THAT BEEN THE CASE TODAY THERE WOULD BE NO JIMMY PRICE OR OTHERS BUILDING OR EXPORTING CARS TO THE US. In fact I doubt if any American would even have heard of South Africa other than in geography and history books!

About two years ago the rand weakened to unreasonable and inexplicable levels given a sound economy and inflation the lowest for many years. The rand hit about 13 to the dollar and about 19 to the pound sterling. Exporters were having a field day and in turn importers, particularly of capital equipment, were taking big strain. Hersh, at that time profits were 'huge' but all too good to last.

Given the crazy and volatile world we live in, the pendulum started swinging and the rand strengthened recently to 6.3 to the dollar. Believe me, for exporters the party came to an end and many companies totally reliant on exports, particularly in textiles, went to the wall.

The rand has now slipped back to seven to the dollar and 13 to the pound which makes it a little easier again for Jimmy and Co. It's felt that the rand will settle at about 7.5 to the dollar which will be a fair middle path for both exporters and importers. At that level profits for Jimmy Price and others will be normal and certainly not huge.

An example of how a weak rand hits you abroad. In July last year I paid the equivalent of R175 for three hours parking in an underground car park off Sloane in London's West End. In central Cape Town I would pay R10!

To give you an idea of South African price structures:

SA rand converted to dollar equivalent at current seven to the dollar:

Annual salaries for senior management - engineers, accountants, other professions about $50000. Thirtysomething Rayban, Gucci, Audi convertible league yuppies in the IT industry about $70000. Engineering workshop manager $25000. Mechanics, asemblers, etc about $14000. Top secretary, thirtysomething about $18000.

We live in a townhouse (condo) complex in the Constantia Valley, 12 miles due south of central Cape Town (103 houses, double storey, flat roof on 20 acres). Value $145000. Those who rent pay about $600 per month.

Fiat Uno 1100 3-dr ($8000), Chrysler Neon 1,6 SE ($22000) Honda Civic 170i 4-dr ($25000), Mercedes-Benz E320 Elegance ($64000). I believe our cars are expensive by US standards.

Three course dinner with wine at top restaurant ($25) Big Mac basic burger ($1,85) Six pack beer ($3,50) Packet of 20 cigarettes (Naughty! Naughty!) ($1,60); Johnny Walker whisky ($12.50).

Petrol at about $2,25 per gallon (R3,50 per litre) I believe is high by US standards but cheap by European standards.

Hersh, I hope this has given you a clearer view of SA rand values.

Mix with doers. Negativity is catching!
Andre 40.
 
Andre

Great post (again)...but I must correct you on two items.
Absolute minimum wage in the US for brainless occupations
is $ 12k per year...usually filled by teenagers and the
totally unskilled. Labor Unions in the US have made US labor a LOT more expensive than $ 14k per year...even for just "assemblers". Tyically $ 30-40k per year depending
where in the US you are. So SA labor is significantly less.

And as far as "room for all competition"....if Jimmy
TRULY sells his GT40 landed in the US for $ 50k...
there won't be much competition left after a while...
at least not at the current price structures.

The new transmission project sounds REALLY exciting.
When can you provide more details?

MikeD
 
Andre, To me, the key thing here is the transaxle. If the car was supplied with a transaxle strong enough to mate up to a big block and a small block, it sure would eliminate a big hassel. I get a feeling that there are many people scrambling around buying up G50/50 and ZF transaxles. I wish all the best to Andre Verwey in developing a transaxle. If it ends up being produced at a reasonable cost, every mid engine kit car builder will be after one.
 
Andre,
It's pretty neat having someone give everyday examples of living costs in another country. Our world is surely shrinking. I still see where my U.S. dollar would go a long way if I visited there.
I think what Jimmy Price has done is simply amazing. He has put together a fine list of cars that people want. All enthusiasts will benefit from what he has accomplished in one way or another. I say the more the merrier. The consumer has another choice. Other manufacturers will have to take note and counter their efforts to stay inline with the competition. If you can't change with the times then you are doomed.
What worries me are those NZGT40 guys ! /ubbthreads/images/graemlins/shocked.gif /ubbthreads/images/graemlins/grin.gif What are they up to? I know they have been awfully quiet of late, and what are they doing in that Indianapolis shop.? /ubbthreads/images/graemlins/grin.gif /ubbthreads/images/graemlins/grin.gif Come on Alain, give us the scoop! /ubbthreads/images/graemlins/wink.gif

Hersh /ubbthreads/images/graemlins/smile.gif
 
Hi All,

I would like to tell you a little story about the theory of 'Room for everybody' as previously mentioned on this forum with regard to those in the GT40 industry.

There's often a tendency by some people to be jealous and suspicious of, or threatened by people who are in their exact line of business.

My brother owns a spincasting business in Pretoria which specialises in the casting of key ring holders, figurines, medals, etc, in mazac (a zinc alloy) and pewter.
Two women (I wouldn't call them ladies) in Cape Town also own a spincasting business, ie 900 miles from Pretoria. They seem to think that spincasting in South Africa is their personal domain and consequently fall into the category mentioned above - plain nasty towards anyone in 'their'industry.

During a recent arts and crafts exhibition in Cape Town my brother walked on to their stand with the intent to say, 'Hi, fellow spincasters'. The two battle axes chased him off their stand so my cheerful, well meaning brother left in a great big hurry with his tail between his legs!

Spincasting is a 'Black Art'. There are few technical manuals available for this industry which means that operators have to stumble along and bump their heads until they perfect the art of mould making, cutting in-gates, metal management, temperature control, etc. Been there myself as in the 1990s I had an interest in a spincasting business and sold the equipment to my brother when the GTD/CAV deal was becoming a reality.

During the past few years my brother has been approached by or come across people who wanted to start their own spincasting businesses. He would happily divulge trade secrets, learnt the hard way, give suppliers names and in fact tell the newcomer exactly how to set up without asking for consultancy fees or any financial reward. In one case, about a year later a person he had helped, landed a massive a key ring holder order. He contacted my brother to ask him if he would share the order as he couldn't manage it on his own. He also happily networks with others he has helped and they would in turn pass on tips and new tricks to him. They say what goes around come around or 'As ye sow so shall ye reap'.

In 1963 I was in Nice in the south coast of France. I came across 11 tile shops, side by side in the same street, making virtually the identical hand painted tiles. I asked one of the shop owners how survives with all the opposition next to him. He replied that collectively they act as a honey pot for all the bees and that if he had been alone in the street he would have been bankrupt a long time ago.

There's moral to the story - Remember that you can get anything in life you want if you help enough other people get what they want.

Andre 40
 
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