Re: The "Packard Premium"

Posted by MJG On 2024/4/29 18:03:08

Economies of Scale - there are a lot more Mustangs out there than Packards. Small lot sizes/runs come at a premium. You have a lot of downtime changing over tooling and once you drop below a certain number it can become a loss for the manufacturer quickly. At a plant I once worked at we manufactured a component at a loss only because it complimented 12 other components that were profitable. I'm sure there is some tax associated with it being Packard but, doubt that is the real driver.
Mike