The best part is that material costs are often some of the lowest costs in making a product. Think about how much more metal and plastic is actually in an SUV compared to a small car. Yea the envelope is bigger but it’s mostly air, and those engines aren’t actually that much bigger. SUVs do not cost more in advertising, employee payroll, safety testing, or R&D and yet will cost 50-100% more than a smaller vehicle because “reasons”. And people will buy them also because “reasons”.
But the small car is held to higher emissions standards than the SUV. The ‘light truck loophole’ means there’s few emissions limits on trucks (which is the same frame an SUV is build upon), so they can have higher per unit profit margins.
The best part is that material costs are often some of the lowest costs in making a product. Think about how much more metal and plastic is actually in an SUV compared to a small car. Yea the envelope is bigger but it’s mostly air, and those engines aren’t actually that much bigger. SUVs do not cost more in advertising, employee payroll, safety testing, or R&D and yet will cost 50-100% more than a smaller vehicle because “reasons”. And people will buy them also because “reasons”.
But the small car is held to higher emissions standards than the SUV. The ‘light truck loophole’ means there’s few emissions limits on trucks (which is the same frame an SUV is build upon), so they can have higher per unit profit margins.