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.