Automotive industry is DEAD!

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Automotive industry is DEAD!

Post by Guest » 05.05.2007, 08:03

HI,

Dunno if this makes any sense or not but I opened up a auto plant, just to see how it goes and it appears to be a big loser all around.

I've done the math and you can check it,
Maybe I made a mistake or there are other factors involved but here it is.

You can sell steel on the market at the lowest price of 134
so I was wondering how am I making or losing my turning my steel into cars.

Market price of steel: 134
But it takes 100 to make an engine, so you would need to sell that engine for over 13,400 to be worth it but the market price for engines is 7,000.
you lose 6,400.

If you make a car body, it takes 300 steel, so you'd have to make over 40,200 to get more than the market price for steel alone.
but the market price for car bodies is only 19,000
You lose 21,200.

If you try to turn it into a car,
then you still spend the steel on the engine and car body 53,600
Plus you need an additional 500 steel
for the total of 120,600 that you could have made if you sold the steel by itself. So you'd need at least that much but the market price for a car is
90,000 and the sale price in France is 101,377
Again you are losing money.

The cabriolets
engine 13,400
car body 40,200
additional steel 53,600
total steel 107,200 worth

market price 89,900
France sale price 80,736
Again you are losing money but not just selling the steel straight out.

Motorbikes
engine 13,400
additional steel 12,060
Total steel 25,460

Market price 28,800
France sale price 30,667

so you do make more here but then you'd have to factor in the price of all the other things you need to make the motorbike, so you're losing again.

Tires
steel required 402
market price 150
Sales price in France 260
not counting the price of rubber or power you are losing money again.

No matter what you do you lose money by making cars,
as apposed to selling the steel straight onto the market.

All prices are subject to change due to Fluctuations in the market.
You prices may very.

Just another helpful hint from the Smith Co efficiency department.

Guest

Post by Guest » 05.05.2007, 23:24

you make everyhting your self and sell it all in your stores you can sell it way higher and make a way higher profit that why you dont c to many on market

Guest

Post by Guest » 06.05.2007, 00:06

Astrologer wrote:you make everyhting your self and sell it all in your stores you can sell it way higher and make a way higher profit that why you dont c to many on market
His point is that if he makes steel himself, it is better to just sell the steel for 134 on the market, than makes cars etc..

Guest

Post by Guest » 29.05.2007, 01:12

I think what he ment was this..

Make steel
Turn steel into car
sell car in your STORE for a profit.

Profit gained.

Right?

Guest

Post by Guest » 29.05.2007, 04:32

I am fairly sure he has demonstrated that no part of the car chain makes sense unless it is retail, you are buying the cars, and the person manufacturing the cars is losing money.

The one expection might be research - if you have piles, it MIGHT start making money. His math does show that Q0 does nothing for you right now.

Our Lesson -> New players cannot make money at all in some product lines.

Guest

Post by Guest » 29.05.2007, 06:20

I am indeed wondering what happens when you get cars up to q4 or higher. The rule of thumb - 5% increase for extra quality, would fast make that steel a non-issue.

Alas I'm not convinced the answer lies in this thread.

Guest

Post by Guest » 29.05.2007, 06:42

Yes, thank you for your responses.
Yes, my point was that you can make more money off selling the steel straight out instead of turning it into cars.
So yes, you can make money off cars just not as much money as selling the steel itself.

I've only now rebuilt my auto plant in a cheaper location and even though the market is pretty dry, I've bought the engines and car bodies from the market for a lot less money than I would have made if I had just sold the steel myself. I'm making my first car now.

Car bodies 12,500
Engines(Q6) 15,950

I figured if I sold the steel that it would have cost;
Car bodies 300 steel
300 steel @135 on market 40,500
Engines 100 steel
100 steel @135 on the market 13,500

So I'm saving a lot more that way and can save my steel for upgrades.

Congo:Car factory E:2 20 m

Guest

Post by Guest » 29.05.2007, 06:53

If you could work out an ROI, including sales, I would be curious. For that matter, send me the sales time and I'll do it for you.

Guest

Heres an Idea.

Post by Guest » 15.06.2007, 09:26

make your own steel, then sell it for 134+ ea,.
buy the car parts, bodies,tires,engines, ect from the market,.
then manufacture the cars at your auto plant, and sell in your own car sales lot.

you make way more money off the steel then the cars anyway, sl your selling steel and also selling cars, yet losing no money cause your buying the parts off the player market. PERFECT! lol i might do this myself.

Guest

Post by Guest » 16.09.2007, 22:11

I make my own seeds and water, and when I made rubber, it cost 5.68c to make it.

Its quality 2, and the price on the market is around 6.00c.

So you lose moeny selling it too market, I may just build a car factory and sell tires.

The auto industry is hard unless everything is mad and researched by elf which is extremly hard especially for autmobiles. All the reserches into carbodies, e-chips, steel, chemicals, minerals, silicon, engines, cars, and so forth.

Guest

Post by Guest » 16.09.2007, 23:49

By the way, someone is seriously into making cars. Have you seen the average quality in France? 9.9 I believe.

If you were going to make a serious run at cars (and I don't necessarily recommend it) here's what I would do:

Pour all your research efforts into Cars (50%), Car Bodies (25%), and maybe Plastic (25%). The other things, just make at q0 or buy off the market. You want to focus all your research efforts on getting quality up, because we know you won't be doing well at q0. If you can get Car research to 20, Car Bodies research to 15, and buy a few points off the market where it's cheap (higher quality E-components frequently aren't much more expensive than cheap ones) then you can be making q3 cars.

Which is closer to the average in Germany and Turkey. They might be enough profit there to make it worthwhile. But only maybe, and this is a whole lot of cash to try it out. Not for beginners.

Guest

Post by Guest » 04.07.2008, 09:30

ok, it's a while back someone posted here, but since I've read this thread i'd thought to give it a new breeze and start making the stuff, hell was I happy when the tires Q1 contest came up, made about 100M caps profit over it, and I can tell you, you might still make a higher profit of selling the steel alone,

but just for game reasons I will try to push the market up (fun part, nobody believed in automotive anymore, now I could buy researches for extreme low prices, Q6 cars for only 2M or engines Q10 for 5M :shock: ).

so the car market will grow, but I would recommend a slighty lower price for car, cabrio and motorbike production.

Guest

Post by Guest » 15.08.2008, 20:00

or ofcourse lower the amount of needed steel, I don't know what a motorbike in real life weights, but I guess it's far from 600kg right ?
and a usual car of 1400kg is average, but still for the game it will cost too much.

Guest

Post by Guest » 15.08.2008, 21:27

I dont know about cars....

I

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