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Re: MGF (was Jaguar XK8)

To: Paul Hunt <on76@dial.pipex.com>, jayj@hpislj.lvld.hp.com,
Subject: Re: MGF (was Jaguar XK8)
From: bleckstein@monmouth.com
Date: Wed, 30 Oct 1996 20:36:27 -0500 (EST)

.
>
>The MGF will not be sold in the USA within 6 years. 6 years is the 
>expected life of the model so the MGF will never be sold in its 
>present configuration in the USA. There are two main reasons for 
>this.
>
>It was known from the start of the project that the car would not be 
>sold in the US. The market is very tough and MG did not want to do 
>what they did with the MGB and lose money on every car sold. 
>

>

>PaulH
>73 Roadster (HD&H)
>75 V8 (DD)


Paul, the alleged claim that the MGB lost money on every car sold to the U.S. 
is 
hotly contested.  Satistics and accountants can play any game they want with 
numbers. I heard an interesting lecture on the subject of the death of MG and 
the speaker claimed that the loss of money on every car was a hoax to close 
Abingdon and promote the TR7 and 8 as The new British Sports Car. As he noted 
the cost of production involves many numbers. The obvious is overhead and labor 
for current production. Although Abingdon was still builing by hand the MGB, 
the 
factory constantly won the award in the British Auto industry for efficiency 
and 
lack of down time for strikes etc. 

However, a car's cost also has to fiqure in development and component costs. 
Engines are one of the highest cost components in this catagory. It appears 
that 
the MG was one of the last if not the last vehicle in production to use the 
1750 
Austin derived engine. Dispite its age in 1980, the engine cost was still 
figured with a developmemt cost factor, hardly fair after 18 years. This went 
for several other components and thus per car costs were being calculated as if 
the MGB was a new model.

Much was done to justify the end of MG production in order to justify the TR7 
consentration. "Look guys we can produce TR 7 at less then the cost of an MGB 
and make money in America. " What marketers those guys were! MG was never 
outsold in the U.S. in its production years by any imported British 
Vehicle.(trivia note: the MG TD was the best selling import in the U.S. in 
1952) 

There seems to be no problem to sell Rovers over here if they are Land Rovers. 
If a car is a success, can't production be increased? 

As you can see this is a sore subject with me and I can't remain objective! 
Damm 
it those Idiots, send us the MGF, NOW!!

Mike Leckstein 

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