Talk Morgan Forums Morgan Sports Cars Morgan Plus Four, Supersport & Plus Six (CX & CXV Generation Vehicles) Reflections on a possible PlusFour

In business a cost is a fact * but a price is a decision. The two are only loosely related. You charge what you can get.

* well it is a fact until you challenge the beancounters and then facts get changed into other facts.

I have to agree with Howard.

In my business life we set prices at a point that we felt would give us optimal volume, without much regard to cost. But I was lucky, we worked with GP% between 85% and 95%.
MMC priced the Plus 6 based on expectation from the pricing of the Aero chassis cars, I'll bet they are very profitable.
As they move down to 4/4 and hybrids the volumes will increase, even if the unit profit per car falls, so total profitability will remain strong.

And yes, the beancounters live in their own world, allocating cost based on where it looks best, rather than any form of reality.

Totally agree, but Invesiwatsit aren't going to let new Mogs roll out of MMC at a loss & with increased 'Stakeholders' (as they like to be called nowadays) I suspect MMC's overheads in Invesi's eyes have shot up ?

You would be shocked at how little the cost of production of mass produced cars actually is. Many would also be shocked at how small dealer margins are. If MMC significantly increases volume with the smaller engine versions, thereby reducing component costs, and at the same time reduces in house labour costs per car with better production techniques, they may very well be able to offer a quite competitive price on an entry point car. If I recall correctly they stated the the PlusSix actually reduced costs by comparison with the Aero based cars.

From my point of view, we who love Morgan cars have pink red glasses on when it comes to the chances of greater sales.
The principles of mass manufacturers can't easily be applied to Morgan cars, I think. If in theory a price of 45000 GBP for a CX 4/4 could be realized by cost-saving measures and if 3000 cars would be built per year in the consequence...
Would more than 1,200 people all over the world buy a new car like this every year? I don't think there are so many potential customers waiting to afford a Morgan. It remains a niche product for conscientious and knowledgeable insiders.
Where are the frontiers that must be maintained despite all the modernized manufacturing to preserve desire and tradition?

I agree. The balance remains the same.....just matching demand with production while making enough profit to survive and develop.

The sales numbers for a new car could be significantly increased without having a negative impact if demand can be stimulated to meet the production. This could be done by selling more to new markets either geographically or to new customer segments such as younger people, both are higher risk than selling to the current market.

The nearest company that has gone through a similar market expansion I can think of is Harley Davidson. They have significantly increased production of a traditional product and have generally done ok but have had some significant bumps in the road. Residuals are still pretty good but possibly not what they were. Time will tell how it plays out for Morgan.

Toyota announced the 4cyl version of the Supra, with 258hp, which leads to another BMW-sourced engine

best news: although it keeps an automatic gearbox, it weighs 100kg LESS than the 6cyl version

as promised the PlusFour would have a manual option: that might even weigh less

If MMC production goes above 1000 units then they will lose their Low Volume exemptions and would need to match all current safety and environmental requirements, which if achievable would ramp the costs up.

I can see that being a good plan, I was wondering where the blocking points in Low Volume were these days thank you.

1000 cars with

Better fit and finish due to design integration
Lower warranty issues
Higher customer satisfaction (whisper it)
Better final retained margin/profit
Better workforce usage to keep it in the UK
Better dealer relations as a result

All seems like a smart move I guess.