Where do the dollars go?

Press, 27 November 1980, Page 14

Where do the dollars go?

A Government study team, which has been looking into the motor industry, has averaged the costs of several Japanese cars in the 1600 cu cm to 2000 cu cm bracket and provided a breakdown of costs. Using the figure of $10,820 as a guide, this is what they discovered: — Sales tax-and import duty ($1010) accounted for a third of the price ($3580). The sales tax is 37.5 per cent on cars from 1350 cu cm to 200 cu cm. Import duty is 45 per cent on the cost of packs for assembly from Japan.

— More than a quarter (26 per cent) of the total cost came from the imported pack ($2810). — The cost of local components ($1335) accounted for a further 12 per cent — A further $995 (9 per cent) came from overheads in the assembly plant and the price of labour was a mere 4 per cent or $4OO. — The remaining 16 per cent makes up the manufacturer’s profit the dealer’s profit and the cost of moving the vehicle to the showroom.