pfarrell;426794 Wrote: 
> 
> 
> ....MB cars have a ton of advanced engineering, and they needed volume
> to
> spread the engineering cost (NRE in the buzz). If they could have
> pushed
> down their technology, such as yaw control, into the Chrysler cars,
> the
> cost would become a trivial cost of the car, with the tiny volume that
> MB has, the engineering cost is tens of thousands of dollars per
> car....

This explanation is a bit mangled. The cost of developing the advanced
technology is called R+D. NRE (non recurring engineering) is more
typically used to described situations where technology is adapted to a
new home (like porting), a new use, or to a specific project or
customer's requirement. Adapting MB technology to work in a Chrysler
electronic environment would have been NRE. The cost to develop it was
R+D, which is a sunk cost before anything is sold. 

Adding volume doesn't make it cheaper. It changes the percentages and
stats, but so too does any means of increasing the volume, whether it is
because of tech sharing or simply by raising prices. Or by charging more
for spare parts! 

I agree with most of the comments of Erland and Pippin. And don't be
surprised if Dean and others move on before too long.


-- 
Goodsounds
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