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These are the industry's most profitable cars and trucks

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Old 11-21-11, 09:30 PM
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Hoovey689
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Default These are the industry's most profitable cars and trucks

These are the industry's most profitable cars and trucks



At the end of the day, every mass-market automaker is nothing more than a company looking for profits. And while you can have a great-looking vehicle that performs well and draws critical acclaim, but if it doesn't sell and it doesn't have decent margins, it doesn't do the company much good. So when it comes down to pure profit, what automobiles are the biggest cash cows?

That's what analyst Max Warbuton aimed to find out. With the help of his team at Bernstein Research, Warbuton looked at the automotive population and created this list of the twelve best money-makers since 1990. According to Automotive News, Warbuton said the top twelve cars and trucks all combine "high prices, huge volume and long periods of production that spread development costs over a long period." While we might quibble that not all of the entries are high in price, the volume side of Warburton's equation makes a lot of sense, especially considering that the Number One most profitable vehicle of all time is – glance back up at the lead image once more – the Ford F-Series.

F-150 aside, all of the American full-size pickups did particularly well in this study, with the Ram 1500 and General Motors twins (Chevrolet Silverado and GMC Sierra) filling out the second and third place spots. (No surprise, given that body-on-frame vehicles like pickups and SUVs are known to be cash cows). German and Japanese automakers round out the top twelve

1. Ford F series
2. GM full-sized pickups
3. Dodge Ram
4. Mercedes S class
5. BMW 5 series
6. BMW 3 series
7. Mercedes E class
8. Lexus RX SUV
9. Jeep Grand Cherokee
10. Honda Accord
11. Porsche 911
12. Toyota Camry

Gallery:
http://www.autoblog.com/photos/most-...photo-4627810/

http://www.autoblog.com/2011/11/21/t...rs-and-trucks/

http://www.autonews.com/apps/pbcs.dl...311219969/1254
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Old 11-21-11, 10:12 PM
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And all sales winners!
 
Old 11-21-11, 10:36 PM
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RXSF
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I wonder what the actual profit margin on each vehicle sold is.

I mean the E class is pretty great on the inside, and while the S class is beautiful too, I dont think there is 40 thousand dollars worth of materials to build the S
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Old 11-21-11, 11:19 PM
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What is amazing to me is GM made tremendous profits on their full sized pickups over the years and still managed to go bankrupt. Speaking of trucks, I am in complete disbelief how many people drive them, and don't even need them. Why? They are hard on fuel, hard to park, not cheap to buy.
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Old 11-21-11, 11:39 PM
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^Hey ... Id love a supercharged tundra....

Do I need one... HELL NO!
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Old 11-21-11, 11:51 PM
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Originally Posted by RXSF
I wonder what the actual profit margin on each vehicle sold is.

I mean the E class is pretty great on the inside, and while the S class is beautiful too, I dont think there is 40 thousand dollars worth of materials to build the S
well, that's also because of the engineering behind the scene that you don't see that counts as well. like the dual paned solar controlled glass, air/hydromatic auto levelling body roll controlling ride comfort selecting active damping cross wind reacting corner leaning suspensions etc. lol

While I agree not 40k may be in the car, but money also goes to design, logistics, overhead, warranty, recalls, and profits. Thus if I buy, I'd like to buy CPO, let it prove to be reliable, and most of all, I'm cheap
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Old 11-21-11, 11:56 PM
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^^ yeah but none of those things are standard on the S
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Old 11-21-11, 11:57 PM
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Im surprised at all the trucks that are such cash cows
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Old 11-22-11, 12:17 AM
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Originally Posted by jadu
Im surprised at all the trucks that are such cash cows
They cost less than your average sedan to design and build, and they charge twice as much just because they are "big".

Its easy to see how they make money off of them.
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Old 11-22-11, 01:53 AM
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Originally Posted by RXSF
I mean the E class is pretty great on the inside, and while the S class is beautiful too, I dont think there is 40 thousand dollars worth of materials to build the S
The materials used have nothing to do with the price when one examines the big picture.

There are intangible and various mechanical and engineering features in an S class that jack up the price. Add a little prestige pricing to the mix and there is your answer.
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Old 11-22-11, 11:24 AM
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Originally Posted by DustinV
The materials used have nothing to do with the price when one examines the big picture.

There are intangible and various mechanical and engineering features in an S class that jack up the price. Add a little prestige pricing to the mix and there is your answer.
Mmmmmm, prestige pricing, PURE PROFIT!!!!
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Old 11-22-11, 11:48 AM
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I think the prestige is a huge chunk of the S class. How much more engineering could they possibly be doing. If car makers can make a reliable, good looking car and sell it for 35K, then I am not sure if the flagship gets 3 times as much engineering effort put in
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Old 11-22-11, 11:52 AM
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Originally Posted by RXSF
I wonder what the actual profit margin on each vehicle sold is.
Yeah, i was hoping to see those numbers as well!
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Old 11-22-11, 02:02 PM
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Originally Posted by Kostamojen
They cost less than your average sedan to design and build, and they charge twice as much just because they are "big".

Its easy to see how they make money off of them.
I rented a car a few weeks ago and got a full sized pick up. It was a F series and I was blown away at how much room there was in the front and in the back seat. It had more room than my LS460. I was telling my wife that its no wonder why people buy these things all of the time. Its like an all in one vehicle. They can be luxury cruisers with off road and bad weather capacity and you can tow and hold things in the bed. My eyes opened a little after that drive, but I am still a sedan man
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Old 11-22-11, 02:12 PM
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Everyone knows the S-Class is way overpriced in terms of profit margins. It's always much more than direct competitors. But we also know about the prestige price tag and many are willing to pay it. More power to MB.

The LS is just as good (I think it's better) and yet costs 10's of thousands less.
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