Several auto analysts claim that after late 2009, some automakers could start making a profit "once the economy recovers." (Let's ignore the fact that the definition of a bad company is one that is only profitable during economic booms)
So how long will it take to pay off?
If we optimistically assume the manufacturer's profit margin for a car is 3%, and there are 11 million new cars bought each year from GM or Chrysler dealers, and that each car costs $35,000 (the estimated cost of the Chevy Volt) then the math looks like this:
11 million cars
3 percent of 35,000 = $1050
$1050 X 11 million cars = roughly 1 billion dollars.
So in a perfect world they could pay the loan off in 25 years! Where can I get that loan?!
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