5th Gear FD2R v FN2R

[jenova]

Well, the RRP of the car is above cost. Cost price could be a few thousand dollars less. And Honda Australia is already pricing cars like the Euro up by $10,000 and DC5R by $22,000. That is ABOVE the RRP price. I'm sure shipping, tax and duties don't come up to 78% of a car's RRP price.

The government has to protect the local car manufacturers too.

[aaronng]

The government has to protect the local car manufacturers too.

Protection comes from the restriction on importing cars from other countries.

[JaCe]

Protection comes from the restriction on importing cars from other countries.

I think that protection was (implied to be) included in the markup amount over the 'cost to produce' (not the cost to Honda Australia).

[aaronng]

I think that protection was (implied to be) included in the markup amount over the 'cost to produce' (not the cost to Honda Australia).

The markup goes into Honda Australia's pockets. Not the governments. The protection offered by the government is in the form of duties/import taxes and the fact that most car models are restricted from being imported.

[JaCe]

The markup goes into Honda Australia's pockets. Not the governments. The protection offered by the government is in the form of duties/import taxes and the fact that most car models are restricted from being imported.

I think my post made it sound like I was challenging you when really I was adding to your comment;
"I'm sure shipping, tax and duties don't come up to 78% of a car's RRP price. "

... and then saying that the significant price increase over the RRP in the domestic country is inclusive of the protection markup. That is, even though the price may seem very high compared to the RRP, it's not ALL going into Honda's pockets (well, it doesn't end up in Honda's pockets).