2015 Cadillac Escalade Rear Tail Light Edge Defect - Page 4
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Cadillac Escalade and ESV Forum - 2015+ Discussion, 2015 Cadillac Escalade Rear Tail Light Edge Defect in Cadillac Escalade Forums; Originally Posted by kars79 Again, Your facts are wrong, Doing business there are 2 different things Gross profit Net profit ...
  1. #46
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    Re: 2015 Cadillac Escalade Rear Tail Light Edge Defect

    Quote Originally Posted by kars79 View Post
    Again,
    Your facts are wrong,

    Doing business there are 2 different things
    Gross profit
    Net profit

    Escalade gross profit is $50k not the net profit.
    That's exactly right.

    DG2,
    Union wage scales, funding retiree pension and health, general human resource costs are so incredibly high, and you are not considering this.

    I've been in business my entire life, focusing on the ultra competitive perishables business. If my net profit isn't somewhere near a puny 50% on my small ticket, fast moving, "everyone buys it" products, I have a big problem.

    McDonald has simple pennies as their cost to make a Big Mac.
    The actual cost spec for the "hamburger" patty would turn your stomach. So divide up the two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun, and you will have products that cost a small percentage of a single penny.
    The rest of your three bucks simply goes into the cost of doing business.

    There is no chance the cost to produce an Escalade is over 15k-18K.
    Aside from the few buck difference between the 5.3L and the 6.2L, the production cost of an Escalade is probably a couple hundred bucks higher than a Tahoe.
    That $2,000.00 cost difference in the Kona? Probably $50.00 actual cost difference. It HAS to be in order for GM to actually design, outsource and produce the pathway to work the option into the assembly process.
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    Re: 2015 Cadillac Escalade Rear Tail Light Edge Defect

    Quote Originally Posted by George C View Post

    McDonald has simple pennies as their cost to make a Big Mac.
    The actual cost spec for the "hamburger" patty would turn your stomach. So divide up the two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun, and you will have products that cost a small percentage of a single penny.
    The rest of your three bucks simply goes into the cost of doing business.
    At least you get two for $5 after 9pm!
    Nihsel10 likes this.

  3. #48
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    Quote Originally Posted by kars79
    Again, Your facts are wrong, Doing business there are 2 different things Gross profit Net profit Escalade gross profit is $50k not the net profit.
    Your dreaming !! You guys are comparing Big Macs and plastic products to automobile manufacturing. . Again, if GM was making a profit of $50k on Escalade and say $40k on Tahoe and $10 k on Malibu. Then they would be the most financially strong auto company in the world ....

    Audi makes $5,000 profit percar and Porsche had the worlds largest profit margin by leaps and bounds at 18% per car

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    Re: 2015 Cadillac Escalade Rear Tail Light Edge Defect

    Quote Originally Posted by DG2 View Post
    Your dreaming !! You guys are comparing Big Macs and plastic products to automobile manufacturing. . Again, if GM was making a profit of $50k on Escalade and say $40k on Tahoe and $10 k on Malibu. Then they would be the most financially strong auto company in the world ....

    Audi makes $5,000 profit percar and Porsche had the worlds largest profit margin by leaps and bounds at 18% per car
    It's not worth the debate on such a beautiful day. Post 25 sums it up.
    Myself, and I'm sure others here who are in business fully understand the amount of gross profit ratios needed in our businesses, and other business's just by experience.
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    Quote Originally Posted by George C
    It's not worth the debate on such a beautiful day. Post 25 sums it up. Myself, and I'm sure others here who are in business fully understand the amount of gross profit ratios needed in our businesses, and other business's just by experience.
    You are correct , it is not worth the debate but you really need to do some homework before you get in one. Please take a look at the attached

    http://energyclimatetransportation.b...ghest.html?m=1

    http://www.dw.de/porsche-emerges-as-...ker/a-16727077

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    Re: 2015 Cadillac Escalade Rear Tail Light Edge Defect

    I think you are a little confused at the point we are trying to demonstrate.

    I sell a shovel for $2.00, and I make a dollar profit.
    It costs me $.07 to make. $.05 for the blade, and $.02 for the wood. I'm holding a shovel that costs $.07.
    (total cost of a rolling Escalade)..

    Then, there are costs added for steel casting and wood milling machines, labor, taxes, real estate, 401K and pension, health insurance for working, non working, producing, non producing retirees ect. (cost to produce an Escalade).
    The fact is that the shovel costs me $.07, but to put the network machine together to build it actually costs me $.93 on top.

    I couldn't care less what those articles display. Each automaker has their own nut, and GM carries the largest, which demands that their vehicle cost be lower than low.
    16K is still more than what I think is involved with an Escalade build.
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    I have a hard time beleiving that. I would say its more like a 6k difference between a tahoe and an escalade. I dont see how all of the electronics,powertrain, wood ect could be that close. On the flip side if it is true than good for gm.

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    Quote Originally Posted by 5.0 lsc
    I have a hard time beleiving that. I would say its more like a 6k difference between a tahoe and an escalade. I dont see how all of the electronics,powertrain, wood ect could be that close. On the flip side if it is true than good for gm.
    Excellent point and I totally believe that an Escalade cost about $6 k more then a Chevy Tahoe. Perhaps that's what the original poster intentions where. As for net profit ( less all material and labor costs etc) GM makes the most net profit on all their pickups and SUVs. They are the cash cows for sure but unless someone shows me any sort of proof I cannot imagine that the net profit is $50,000. If it is I'll never buy another Escalade again as that shows they are made from pretty cheap stuff !'

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    Re: 2015 Cadillac Escalade Rear Tail Light Edge Defect

    They will NEVER be shown as a singular net profit.
    Do you think they are crazy? Do you think working America understands the basics of big retail?
    Walmart probably has .01 cent involved in actual product cost in a $1.00 sale. That's why they produce everything in China instead of Main St. USA.
    Why do you think the super expensive designer clothing stores uses sweat shop labor? Because after advertising, mall rent, celebrity spokespeople etc, they need room for profit.

    You are asking the wrong question.
    Ask what the per vehicle cost is before they pick up a wrench and push the start button on the assembly line every morning. You won't get an answer to that one either because the actual rolling cost will be found out, and that will never happen.


    I drive a 65K Ford Super Duty diesel. Nice truck.. Really worth it?
    Aside from it's more highly developed engine, just WTF am I getting?
    A frame, a stamped together bed, a cab with decent pieces of leather amongst the rest of the plastic seat. Maybe a decent stereo that also resides on a Focus. I'm guessing a 6K engine in an 8K truck.
    I also own a Silverado pick up. Same deal. 37K sticker with a weak 5.3L and a small cloth jump seat they call a double cab these days.
    Talk about getting hammered.

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    Re: 2015 Cadillac Escalade Rear Tail Light Edge Defect

    Ok to sum it up, all posters in this thread except DG2 thinks the Escalade likely costs under 18k in materials to build. DG2 believes it's about triple that. I don't agree, but if he is right that would certainly explain the bail out! We aren't looking at net profit of 50k, only a markup over material costs of about that.

    Now what about my tail lift damage?

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    Quote Originally Posted by OneStepAhead
    Ok to sum it up, all posters in this thread except DG2 thinks the Escalade likely costs under 18k in materials to build. DG2 believes it's about triple that. I don't agree, but if he is right that would certainly explain the bail out! We aren't looking at net profit of 50k, only a markup over material costs of about that. Now what about my tail lift damage?
    Was just at a Caddy dealer looking at new Escalade and rear taillights looked normal.

    One last point on profitability of Escalade that will end this conversation once and for all ( albeit kudos to everyone for a lively debate). Please go by what " Wall Street " looks at as per vehicle profitability......... Conversation over. .

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    Quote Originally Posted by DG2
    Was just at a Caddy dealer looking at new Escalade and rear taillights looked normal. One last point on profitability of Escalade that will end this conversation once and for all ( albeit kudos to everyone for a lively debate). Please go by what " Wall Street " looks at as per vehicle profitability......... Conversation over. .

    Everybody is free to think whatever they want.
    But truth is only one.

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    Re: 2015 Cadillac Escalade Rear Tail Light Edge Defect

    Tail lights...
    If it were me, I wouldn't bother taking it back to a dealer to be fixed. I would remove and polish the edges down myself.
    I find that most GM, Ford, or whatever dealer technicians really don't G-A-F, are not nearly as anal as the group of people like us who notice small defects. My fears are that they would probably cause more noticeable colateral damage by" fixing" the problem, than the problem itself.
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    Quote Originally Posted by George C
    Tail lights... If it were me, I wouldn't bother taking it back to a dealer to be fixed. I would remove and polish the edges down myself. I find that most GM, Ford, or whatever dealer technicians really don't G-A-F, are not nearly as anal as the group of people like us who notice small defects. My fears are that they would probably cause more noticeable colateral damage by" fixing" the problem, than the problem itself.
    Agree 100 percent.

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    Came across this Businessweek article that I thought you would be interested in reading. $10-$20k profit on the Tahoe/Denali/ Escalade. Those are healthy numbers.

    http://mobile.businessweek.com/artic...-still-profits

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