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[Nick W]

Having worked in the automotive parts world for much of my career, making switches, solenoid, brakes, turbos, for Lucas and Garrett, you'd be amazed at how cheap each of the bits are.

The major costs is sucked in through development and infrastructure and tooling. The one off costs. Having spent the money, they need to recoup it, but it's probably 35% of the cost over the first 2 years. After that, they could probably drop the price, but they need to use the profit on existing vehicles to pay for thier replacement.

If they stopped designing new cars and new technology and just produced the same car for the next 50 years, they could concentrate on just making it cheaper and more reliable.
Think Daewoo nexia...

Think Model T Ford, which over 16 years went from $825 to $260. The car didn't change much, but the manufacturing certainly did!