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Ford makes a bundle on Sync



Everyone knows automakers make a ton off must-have options, such as built-in navigation units, but did you have any idea just how much?

BetaNews is reporting that the parts used in Ford's Microsoft-developed Sync costs the automaker $27.80 per vehicle. The cost to the customer? $395. Now that's a pretty impressive profit...
Makes me wonder about the cost of all the other options we all willingly pay for?

Full story here.

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11 Comments

ateixeira says:

10:21 AM, 02/27/08

That might be just the production cost alone.
 
I bet it's much higher when you add R&D and marketing costs.

comp386 says:

10:32 AM, 02/27/08

You also have to realize that it doesn't include the MS software required to make it work. It's like pricing out a car by determining the cost of all the parts. The real cost in most things is engineering the complete package. Still, I'm guessing sync is decently profitable for Ford. Electronics are some of the most profitable parts to a car.

redliner says:

11:32 AM, 02/27/08

Microsoft may also be covering many of the costs of this system. The advertising power attached to the SYNC name is huge.

texases says:

12:03 PM, 02/27/08

Kinda like "I could buy the bun and burger for $0.50, why's a Big Mac $2?" kind of nonsense. Nevermind the factory and employees, etc...

estreka says:

12:59 PM, 02/27/08

Nav is by far the most profitable item carmakers sell. Premium sound systems are also lucrative.
 
The most bang-for-your-buck items are trannies, premium engines, locking diff, 4WD, and other hardware upgrades.

bepperb says:

01:16 PM, 02/27/08

I'd be curious to see what MicroSoft financed for this system. I wouldn't doubt they bankrolled the entire software package in return for branding, or at most they charge a small marginal fee. So my bet would be that Ford only pays 50 bucks per car even with all their overhead included (the bun, burger, flame, chair, sign, worker and whatever else BK needs).

jalancast says:

03:47 PM, 02/27/08

Never thought I'd see the words "Ford" and "profit" in the same sentence again...
 
Way to go Ford! Maybe my stock will rise now...

jeyhoe says:

04:03 PM, 02/27/08

This is REALLY stupid. $27 for parts maybe but Bill Gates probably gets $250 per car so figure that in. I'd bet he's getting most of the profit, if he works Ford the way he's worked all the rest of the suckers he's ever done business with. Guaranteed microsoft didnt develop the sync software - they either bought it or stole it from someone else, as usual.

crazymustang says:

06:38 PM, 02/27/08

i think ford is actually coming to a point where there making their come-back, if not already, their products in whole are enough to keep them going, but hey, it what they do

jerrywimer says:

11:21 AM, 02/28/08

I doubt MS' stake is as high as some believe. If they were bankrolling most of it themselves, I'd expect to see availability in other brands' vehicles (*outside* FMC), since they'd want the biggest return-on-investment, just like they get by selling PC OS to everyone and his brother (PC manufacturing companies as well as standalone OS direct-to-home / business users).

steve_ says:

06:25 PM, 02/28/08

Ford's exclusive claim on Sync is for eighteen months. So you can expect to see it roll out on other brands, probably sometime in 2009.

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