You Go Boy, Drop That Pump

[Happy Monkey]

Originally Posted by xoxoxoBruce

Not exactly, the factory can be amortized over the life of the factory, but the tooling for each specific model is amortized for that model. I think the tooling costs far exceed the factory cost.

When I say tooling, I'm including all the costs to design, refine and test the model prior to production as well as the specific tooling to manufacture it. The factory is just a box to keep the weather off the expensive shit.

Yes, but just as you can reuse some of the tooling from a previous version of the Hummer, you can reuse some of the tooling you come up with for the new hybrid in future hybrids. And there is plenty of new stuff in the H3 that isn't carried over from older versions, just as there will be in future hybrids.

What I was saying is that it's silly to penalize hybrids for being at the beginning of their amortization terms. Using that logic, we should still be in Model-Ts, to avoid the costs of retooling the factories.

Whether the cost is measured in dollars or carbon, it's expensive to bring in a new technology.