The cost of the surplus V8's could already have been covered by profits from sales of Aero SS so whatever MMC sticks them in is a win win situation as far as the bottom line is concerned, though I don't know what a BMW v8 costs if they were Rover units they left Solihull at about £45 for a short engine......
I really don't think that will be the case here. I suspect that- following normal motor industry practice MMC will have had to pay a fair proportion( if not all ) of the cost up front and/ or securitised against that.
Given that the Aero/SS was always predicted on a fairly specific production run and this has not been fulfilled. MMC could be looking to use those BMW engines in any way they can. Moreover, with a production run shortfall which is, in percentage terms, fairly large, I can't see any way they will have made sufficient profit to absorb the loss on the unused engines
£45 quid a short engine? I suspect you might be talking in multiples of ten times that per unit here?
G
PS ( and this is with my cynic's hat on) I quake to think how MMC would/will deal with the electrical/ management interface bewteen the Beemer -supplied kit and their own stuff. They couldn't do it in the Aeros- how the heck are they going to manage it in a trad?
Still, at least it will keep silicone goo suppliers in business.
G
