It's always been that way. The new Escalade is no different than trucks 20 years ago. More options = more profits. Folks here in MI still pine for the good 'ol days in the early 2000s when Ford and GM couldn't build fullsized SUVs fast enough, and line workers were pulling in over $100k with overtime. Heated leather seats, power everything, adds cost and even more profit.

Case in point: How much does a sunroof cost as an option? I've seen anywhere from $1k-$3k. Well, the sunroof companies sell it to the OEMs for less than $200. It's the second-highest profit margin item on a vehicle.

 

Are you sure it's $40k to assemble? I feel like my Tahoe was built from about $20k in materials

 

lol...20k, maybe you got the Monday/Friday build.


I just know what they sell for when the dealer hold back is removed and manufacturer incentives added. I assume they are still making a profit even at that price.