Cruze (Lacetti) Prices in South Korea

[bobthebilda]

http://wot.motortrend.com/6332694/au...tti/index.html

The hotly-anticipated Chevrolet Cruze went on sale this week in South Korea, where it will be sold as the Daewoo Lacetti by GM's South Korean subsidiary. The new compact will sell there for 11.5 million won, or about $7948 at current exchange rates.

Obviously the $7948 was US dollars conversion a little while ago, however when i convert 11.5 Korean Won into Australian dollars, i get $11089. If i add 5% duty, $1000 transport, and $1250 GST, i come to about $13800. Add another $1200 for rego and stamp duty, and it still only comes to $15000. Surely Holden arent making $8,000 on this car. Am I missing something somewhere.

[Deco28]

Originally Posted by bobthebilda

http://wot.motortrend.com/6332694/au...tti/index.html




Obviously the $7948 was US dollars conversion a little while ago, however when i convert 11.5 Korean Won into Australian dollars, i get $11089. If i add 5% duty, $1000 transport, and $1250 GST, i come to about $13800. Add another $1200 for rego and stamp duty, and it still only comes to $15000. Surely Holden arent making $8,000 on this car. Am I missing something somewhere.

That's a nice little profit o.0.

9 months sales, 18,000 cars sold. $144,000,000 profit.

[dom_105]

South Korea drive on the right.

Might make a bit of a difference

[bobthebilda]

They sold left hand drive G8's to the US, cheaper than they sold commodores here. Even allowing a few hundred dollars for line difficulty to assemble right hand drives, the gap in prices cant be flowing to Holden. Something must be missing.

[FPV GTHO]

Prices arent necessarily dictated by cost price + necessary profit margins. Theyre as much market influences as anything else. The G8 sold for cheaper in the US than an SS did here because the Americans dont pay much for their cars in general, not to mention a lower minimum wage.

[XR Martin]

Also the spec level will be different, a 1.6L is standard for starters.
Less airbags?, no ABS/Traction aids? No A/C?, manual windows? etc etc

[bigdude1011]

Think of the British, they have to pay £12,800 for their 1.6 Cruzes
http://www.chevrolet.co.uk/cars/cruz...r/cruze-s.html
Would still rather have a Focus...

[Jimmyd]

Don't forget the Lion badge markup........loooooooong history of GMH badge engineering products and charging a preimum for it.

[SB076]

Originally Posted by bobthebilda

http://wot.motortrend.com/6332694/au...tti/index.html




Obviously the $7948 was US dollars conversion a little while ago, however when i convert 11.5 Korean Won into Australian dollars, i get $11089. If i add 5% duty, $1000 transport, and $1250 GST, i come to about $13800. Add another $1200 for rego and stamp duty, and it still only comes to $15000. Surely Holden arent making $8,000 on this car. Am I missing something somewhere.

I think your freight figure is a bit light (but not by a huge amount) You also need to take into consideration insurance, plus additional transport required in Aus (think you will find the Cruze sells for a similiar price whether its sold in Melbourne or Central Aus)

There would also be issues with payment (do Holden pay the plant prior to shipment? How long do they hold the cars before selling them? Storage costs, ROI etc) Plus I assume Holdne would have some sort of forward cover on the exchange rate.

There would also be conversions costs, tooling amortisation (I presume) plus different equipment levels

In addition to that how many ads do you see for the Cruze on tv? I am sure Holdens marketing and advertising costs a reasonable amount to run.

Having said all that however I am sure Holden would pay less for the Cruze (same equipment spec) than the Korean public - but there would be a lot more costs involved than what we realise.

Wonder what they do with warranty costs? Who pays?

[RG]

You cannot compare market pricing between Aus and South Korea as there are too many differences. In South Korea for starters they are basically throw away cars, you see bugger all older (90's) cars on the roads there. 99.5% would be new.

[Fairlane]

RHD, ADR Compliance & ANCAP testing, Holden has to cover warranty, the Aussie Cruizes probably have higher specifications not to mention stuff like higher quality tyres. It all adds up, plus they probably sell 50 million of the things in a Korea, after all they are made there by GM DAT so there is no middle man (aka Holden)