Development Cost To Ford to produce the Ford GT

[F Pilot]

A question that I can't seem to find the answer to anywhere so pardon me if it has been covered here.

With new regular models costing somewhere in the neighborhood of $500 mil to bring from sketch to showroom, does anyone have the # that the FGT cost to bring from sketch to showroom?

Best

Jeff

 

[PeteK]

If you’re referring to the 05-06 models, it was not an expensive project by high-production new car standards. I know from talking to Raj at Rally 10 that they did make a profit on the run of 4030 cars. Not a big profit, but they produced a “halo car” and actually made money on it. I’ll guess the invoice to the dealers was around $140K, so the total revenue to Ford was about $560M. If 10% of that was initial development, then somewhere around $56M.

Some of the other guys here may know more about how much the program cost.

 

[F Pilot]

If you’re referring to the 05-06 models, it was not an expensive project by high-production new car standards. I know from talking to Raj at Rally 10 that they did make a profit on the run of 4030 cars. Not a big profit, but they produced a “halo car” and actually made money on it. I’ll guess the invoice to the dealers was around $140K, so the total revenue to Ford was about $560M. If 10% of that was initial development, then somewhere around $56M.

Some of the other guys here may know more about how much the program cost.

That would be incredibly cheap, (relatively speaking) if in fact the correct #. My guess is that after all said and done, Ford did make money but that they grossed 10% on the design, tooling, build and promo cost. I have zero facts, just my opinion, it would be an interesting factoid to confirm.

Best

Jeff

 

[PeteK]

Remember, this car was largely hand built in small teams, not on an assembly line with all the development, industrial design, and special tooling required for that kind of high-volume production. So compared to a high volume model, its development cost would be much cheaper, but its manufacturing cost much higher, requiring a higher price; which it did have.

 

[F Pilot]

Thanks for that Pete.

Best.
Jeff