Comparison of Indirect Cost Multipliers for Vehicle Manufacturing
COMPARISON OF INDIRECT COST MULTIPLIERS FOR VEHICLE MANUFACTURING
Technical Memorandum in support of Electric and Hybrid Electric Vehicle Cost Estimation Studies
by Anant Vyas, Dan Santini, and Roy Cuenca Center for Transportation Research Energy Systems Division Argonne National Laboratory 9700 South Cass Avenue Argonne, Illinois 60439
April 2000
Work Sponsored by United States Department of Energy Assistant Secretary for Energy Efficiency and Renewable Energy Office of Transportation Technologies
Disclaimer
This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor The University of Chicago, nor any of their employees or officers, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of document authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof, Argonne National Laboratory, or The University of Chicago.
COMPARISON OF INDIRECT COST MULTIPLIERS FOR VEHICLE MANUFACTURING INTRODUCTION In the process of manufacturing and selling vehicles, a manufacturer incurs certain costs. Among these costs are those incurred directly as a part of manufacturing operations and those incurred indirectly in the processes of manufacturing and selling. The indirect costs may be productionrelated, such as R&D and engineering; business-related, such as corporate staff salaries and pensions; or
Technical Memorandum in support of Electric and Hybrid Electric Vehicle Cost Estimation Studies
by Anant Vyas, Dan Santini, and Roy Cuenca Center for Transportation Research Energy Systems Division Argonne National Laboratory 9700 South Cass Avenue Argonne, Illinois 60439
April 2000
Work Sponsored by United States Department of Energy Assistant Secretary for Energy Efficiency and Renewable Energy Office of Transportation Technologies
Disclaimer
This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor The University of Chicago, nor any of their employees or officers, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of document authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof, Argonne National Laboratory, or The University of Chicago.
COMPARISON OF INDIRECT COST MULTIPLIERS FOR VEHICLE MANUFACTURING INTRODUCTION In the process of manufacturing and selling vehicles, a manufacturer incurs certain costs. Among these costs are those incurred directly as a part of manufacturing operations and those incurred indirectly in the processes of manufacturing and selling. The indirect costs may be productionrelated, such as R&D and engineering; business-related, such as corporate staff salaries and pensions; or
References: American Automobile Manufacturers Association, 1998, Economic Indicators: The Motor Vehicle’s Role in the U.S. Economy, Detroit, Mich. Borroni-Bird, C., 1996, “Automotive Fuel Cell Requirements,” Proceedings of the 1996 Automotive Technology Development Customers’ Coordination Meeting, U.S. Department of Energy, Office of Transportation Technologies, Washington, D.C. ANL 2.00 1.50 Borroni-Bird 2.05 1.56 EEA 2.14 1.56 EEA Methodology Share of Cost Contributor or Category MSRP (%) 50.0 Vehicle Manufacturing 17.0 Overhead 7.0 23.5 Selling 97.5 Sum of Costs 2.5 Profit 100.0 RPE Share of RPE (%) 46.9 22.1 22.9 91.9 8.1 100.0 Page 7 Cuenca, R.M., L. L. Gaines, and A. D. Vyas, 2000, Evaluation of Electric Vehicle Production and Operating Costs, Argonne National Laboratory Report ANL/ESD-41, Argonne, Ill. (to be published). Vyas, A., R. Cuenca, and L. Gaines, 1998, “An Assessment of Electric Vehicle Life Cycle Costs to Consumers,” Proceedings of the 1998 Total Life Cycle Conference, SAE International Report P339, Warrendale, Penn., pp. 161-172. Page 8