Quote:
quote:Originally posted by DTs_PTGT
Steve03GT,
Would the difference between Chrysler and GM actually be closer to (44.2 - 39.3)($62.78) = 307.62 if you're accounting only for the difference in labor? To me, your calculation ( 1.125(16448) ) adds in the cost of parts as well.
This is assuming that the parts for the car cost exactly the same amount.
IMHO, the real savings would probably be the net effect of more cars / plant / time cycle or the same amount of cars taking a shorter time to build.
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Good point, but yes, I ASSumed parts costs to be similar since the article stated labor is ~15% (12-17%) of the cost of a vehicle. Does that make sense?; I'm very [:I] at this moment. I'll look at it later - afterall, I could be wrong. 
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