What's it cost DC to build a 5.7 Hemi?

[dodgetruck1]

Can anyone answer this with a reasonable level of accuracy?

How much does it cost Chrysler to build a 5.7L Hemi Crate motor?

I'm talking complete motor, with computer and harness. Basically, all the stuff that comes with the fuel injected version 5.7 Hemi crate.

Labor + materials. Remember that they build these in Mexico, and that they have capacity to build 440,000 engines/year, and the crate motors share most parts with their production counterparts. Of course, I doubt all the parts are built in Mexico...

Reason why I ask is because I have thought for quite some time that the 5.7L Hemi Crate motors are TOO EXPENSIVE. I think it is nearly impossible for the normal guy to afford one. That's why I went for a used junkyard 5.7L Hemi, having paid less than a new 360 Magnum crate motor.

For example, a carbureted Magnum 360 crate motor is about $4000. This is old technology! Can the addition of aluminum heads, a computer and fuel injection (parts shared with the production vehicles, except computer and harness) really make the whole thing worth double the price of a 360 motor?

For reference, I have posted the following figures which relate what margin percentage they'd be getting at various cost levels.

If the 5.7 Crate motor sales price is about $8160, the following costs result in the profit shown, based on a particular gross margin percentage:

Cost______GM%____Profit
$4,905____40%_____$3,270
$4,490____45%_____$3,674
$4,080____50%_____$4,080
$3,675____55%_____$4,492
$3,270____60%_____$4,905
$2,860____65%_____$5,311
$2,450____70%_____$5,717
$2,040____75%_____$6,120
$1,635____80%_____$6,540
$1,230____85%_____$6,970

GM% = Gross Margin Percentage, where Price = Cost/(1-GM%)

So, if the 5.7L Hemi motor cost DC $3,270, they'd be making about $4,905 per motor!!!! I know they're in business to make money, but where should the line be drawn between reasonable and highway robbery? And what thought was given to the price enthusiasts could pay? Or for that matter, how much engine you could get from GM Performance Parts with the same $8,000? Remember, when swapping in a crate motor, you don't necessarily have to stick with the same brand of engine....

Playing devil's advocate and assuming it costs DC a lot, nearly $5000, to build a 5.7 Hemi, they'd still be making about $3,200 each!!

Thoughts? Anyone know what it costs DC to make a Hemi?

Kris

** Price on Summitracing.com for the 4510593 is $8,293.69, not including tax or truck freight charges if applicable

[HEMICharger/Durango]

Supply and demand. If the crate motor and the production engine share similar parts and DC is having trouble keeping up with demand on the production end that will drive up the price of the crate motor.

[57HEMICUDA]

Totally agree, thats why i went with a truck motor and used the Camaro ls1 electronics,which is much better then the chrysler stuff anyway.The electronics used by chrysler are ok if you make no modifications,but there crate motor uses an oem truck cam,I knew i'd be changing that.Still working a few of the bugs out,but it was way cheaper then the crate motor,and makes more power. http://mysite.verizon.net/ls6ron/

[hemijr]

Can anyone answer this with a reasonable level of $4,905____40%_____$3,270So, if the 5.7L Hemi motor cost DC $3,270,

Thoughts? Anyone know what it costs DC to make a Hemi?

Kris

** Price on Summitracing.com for the 4510593 is $8,293.69, not including tax or truck freight charges if applicable

*****************************************************
in talking to a couple of Exec's @ DC >it's even less than what you are suspecting!
even the whole vehicle cost would be even less than summits engine price!
at the mass volume they do - what would one expect? the rule of thumb for any Retail item for sale is 10% cost factor. I.E. 50.00 pr of jeans = 5.00 cost vrs - the hard cost after the fact >shipping, handling, storage, sales, taxes, labor, Insurances, cost of work place, utilities, scrap, R & D, enginering, testing, ect. ect. ect.