How do you know the EVO has a very low profit rate?

 

Cuz it does..fact.

The EVO has helped with their image and helped get them good press..

But the gross per unit is like $2,000.

And only 6,000 or so have made it to the shores..

Let's say they ALL were sold. That hardly enough money made on one model to help stay afloat here..

They need a "bread and butter" car like the Camry or Corolla to do it to help with the volume side..

Then they need some "hot" merchandise lile the EVO was for awhile..to help..

But other than that, who knows..

One things for sure..Let's all keep our fingers crossed that the "MR" is still going to come..

That is after all what this thread is about..The "MR"..

 

Of course earns more from their bread and butters like the Galant as a whole , which sells over 100,000+ units??
I was really talking about the per car profit margin

 

All halo sports cars have unbelievably low profit rates. The cars are there to improve the mark's reputation. The Evo is a halo car that draws in people, but then when they get there the dealers are like "well, we have similar "sporty" offerings at a more affordable price..."

Supra, 3000GT, Evo, NSX, etc. are all halo cars that serve a niche market. The bread and butter of any car maker are the Civics and Accords (i.e., Lancers).

 

The invoice on the Evo is like, $26K or so. MSRP is $29K. Minus destination, dealers make like $1K-$2K per Evo. I wouldn't say that's very profitable on a car that's likely to be brought back in for warranty work.

 

As was I..
Thats what I meant by the $2,000 per car profit on the EVO..

Not much fun there for the dealer at list..

Which explains why they were going with the goofy mark-ups..To try to make some money on 'em..

I HOPE the EVO "MR" arrives and I also HOPE that the dealers learned from the Evo 8 intro and the backfiring markup..

We will see..

 

They may actually earn LESS on these cars because the market is so competitive..
I'll bet the average gross on a Galant is in the $800 range..



Tough to make any money selling

 

we all must do our best to get the mr here in the united states.

 

http://biz.yahoo.com/ap/040423/mits..._motors_23.html



Did you guys read the news on this site? Mitsubishi is not the trustworthy corporation that I have hope for it to be. Instead, this company is terrible at standing behind their own products. Furthermore, it placed a lot of consumers in danger by not admitting to the manufacture defects. Unless mitsu straighten out their act and behave more appropriately, this corporation does not deserve to stay alive in the automaker world. Industry where safety is one of main concerns. And safety is not denying defects for 10 years and not killing pedestrians with a tire of its product. May be this is the reason behind d. chrysler's withdrawal of its support to the dying mitsu corp. And may be we should do the same.

But before this happens, I hope that mitsu straighten things out and become a corporate that values lives more than profit...

 

if the evo mr does not come here soon at least the regaulr evo will come with leather seats and a 315 watt infinity sound system with a subwoofer as options. be positive about the mr. I am waiting for it mitsubishi but i can't wait forever.

 

Halo cars, as some people have mentioned, don't make the company a direct dime. They try to bring in money indirectly. Folks come in to see the hot model, and go home in something more affordable. DCX seems to be doing a good deal of this by sticking the 5.7L Hemi in several vehicles.

Some halo cars don't even make a dime. The Volvo S60 R I believe was selling at a slight loss more often than not.

What Mitsu Auto probably lacks, that most other manufacturers have, is a high-profit vehicle that sells in considerable volume. The classic example is Ford's Crown Victoria. They sell an ugodly number of these each year just as fleet vehicles, and the profit on the car averages about $10,000 per unit. $10K? You typically see that sort of number on a 7-series.

 

Source please..I have a tough time believing this one..

 

I meant DC would be making a mistake in cutting funding because cars take years to develop, and the two companies have already made plans to make cars together. If Mitsu dies, DC will have to figure out how they will continue to make the joint vehicles.

Another thing that I have to imagine is hurting Mitsu is the fact that they took a relatively decent looking bread and butter car in the Galant and made it disgusting looking. Damn what a piece that new Galant is...

I think, as I said before, if they have the MR being manufactured already, they might as well make more for our market. It will attract people to the dealership, and likely the people looking for an MR aren't looking for a Galant. By getting rid of their better vehicles, the company takes on an image of only having economy junk cars, kinda like Kia.

 

if they have the MR being manufactured already, they might as well make more for our market.

That's what I am talking about. If they are going down, they might as well just go all out and make the MR with options that are available on most 30k cars in the US right now(for our market only)

 

That's what I am talking about. If they are going down, they might as well just go all out and make the MR with options that are available on most 30k cars in the US right now(for our market only) [/B][/QUOTE]