What would it cost to build and sell a Model T today?

[living sounds]

Starting from December 1924 a brand-new Model T could be had for the modest sum of $290 ($5,333 in 2024 dollars).

I wonder how much it would cost to mass-produce (with similar economies of scale) one of identical (or better) quality (= a replica) today. Made in the USA or imported.

I somehow doubt, despite all the advances in productivity and manufacturing, that it would be (much) cheaper...

 

[Matador]

A good friend of mine at Ford was telling me that when Ford opened it's Greenfield Village museum, it wanted to offer rides on Model T's to museum patrons, but didn't want to risk original vehicles, so the custom shop built a dozen or so of them from the original plans. If memory serves, he said they cost between $25k and $35k to make. Obviously that's not mass production, but I'm guessing they would cost commensurate with a new Tarus base model which goes for about $27k today.

 

[JohnRoberts]

EVs are cheaper to design and build (ignoring the batteries). I just read about the new Lucid EV, 0-60 in <1.9 seconds, only $250K.

Years ago I speculated about powering EVs through a conductive or perhaps inductive coiled roadway. An EV without battery would be cheaper, lighter, and even faster.

I think there are some modern low end vehicles in China down in that Model T price range (adjusted for inflation).

JR

 

[living sounds]

This is not about EVs (though I own one and love it).

My point is that I have a suspicion that after 100 years of productivity gains it might still not be less expensive for the consumer to buy because of the cost of raw materials, labor, higher profitability expectations by shareholders, marketing and advertising cost as well as taxes.

It would be an interesting calculation to make. Maybe I should ask a latest generation AI model that question...

 

[JohnRoberts]

This is not about EVs (though I own one and love it).

I only mentioned EV because it's an objective fact that they are cheaper to build (less labor... the unions are already concerned), relatively less complex BOM (no transmission and/or differential). The only stinker in the pudding is battery costs and everything associated with that.

There might have been a secondary issue with the grid capacity. This was silent until all those AI server farms started sucking energy like vampires. Now the grid capacity is back in view and tech companies are embracing nuclear generation (including restarting old shuttered plants).

My point is that I have a suspicion that after 100 years of productivity gains it might still not be less expensive for the consumer to buy because of the cost of raw materials, labor, higher profitability expectations by shareholders, marketing and advertising cost as well as taxes.

don't forget regulations?

It would be an interesting calculation to make. Maybe I should ask a latest generation AI model that question...

JR

 

[living sounds]

I had a friend pose the question to the latest (subscription service) version of ChatGPT. Looks like it confirmed my hunch:


Calculating the cost to mass-produce a replica of the Model T today requires an analysis of various factors including materials, labor, manufacturing, and overheads, adjusted to modern economic conditions.

### 1. **Materials**
The Model T was primarily made of steel, iron, wood, rubber, and leather. Today, sourcing the materials to match the Model T's specifications would involve higher costs due to the increased price of raw materials, compliance with modern environmental and safety standards, and the need for specific retro-styled components.

- **Steel and Iron:** Steel production has become more efficient, but costs have increased with demand and environmental regulations. As of 2024, steel prices are approximately $700-$1,000 per ton. The Model T used around 1,200 lbs (0.6 tons) of steel, which would cost between $420-$600.
- **Wood and Leather:** Costs for high-quality, sustainably sourced wood and leather are higher today. Leather seats could cost around $500-$1,000 for the vehicle, and wood framing might add another $200-$500.
- **Rubber:** Tires would need to be manufactured to match the original's specifications, which would likely cost more due to the limited production runs and current material prices. Estimate about $200-$400 per set of four tires.

**Total estimated material cost per vehicle:** $1,500 - $2,500

### 2. **Labor**
Modern labor costs are significantly higher than in the 1920s. A unionized auto worker in the U.S. might earn around $20-$35 per hour. Given the simplicity of the Model T's design, the production time could be reduced with modern manufacturing equipment, possibly requiring around 100 hours of labor for each car in a low-volume, semi-automated production environment.

- **Total labor cost:** 100 hours x $25 (average) = $2,500 per vehicle

### 3. **Manufacturing**
Modern factories are more efficient but also have higher overheads due to technology, compliance with environmental and safety regulations, and quality control. Mass production in a dedicated factory would drive down costs, but an identical replica might require specialized tooling.

- **Initial tooling and setup cost:** Estimating an upfront investment for tooling and factory setup could range from $2 million to $10 million, amortized over a production run of, say, 10,000 vehicles: $200-$1,000 per vehicle.
- **Production facility costs:** Includes electricity, maintenance, and other overheads. Assuming modern assembly line efficiencies, the estimated cost could be around $500 - $1,000 per vehicle.

**Total manufacturing cost per vehicle:** $700 - $2,000

### 4. **Marketing and Advertising**
Even with niche marketing (vintage vehicle enthusiasts), a campaign to promote a new "Model T" replica would be necessary. Marketing expenses could range from $1 million to $5 million, depending on the scale of the campaign. Spread over 10,000 vehicles, this could add around $100-$500 per car.

### 5. **Profit Margins**
Modern manufacturers aim for a gross profit margin of around 10-20% on vehicles. Assuming a total cost (excluding profit) of around $5,000 to $7,000 per vehicle, a 15% profit margin would add approximately $750-$1,050 to the final price.

### 6. **Taxes and Compliance Costs**
- **Corporate taxes:** Modern corporate tax rates vary, but a general estimate for a U.S.-based manufacturer could add around 5-10% to the cost.
- **Regulatory Compliance:** Even for a vintage replica, manufacturers would need to comply with safety and emissions regulations unless special exemptions are granted. Modifying the design to meet modern safety standards (like seat belts and lighting) would add costs, possibly another $500-$1,000 per vehicle.

### **Estimated Final Cost Breakdown per Vehicle**
- **Materials:** $1,500 - $2,500
- **Labor:** $2,500
- **Manufacturing Overheads:** $700 - $2,000
- **Marketing:** $100 - $500
- **Profit Margin (15%):** $750 - $1,050
- **Taxes and Compliance:** $500 - $1,000

**Total Estimated Cost:** $6,050 - $9,550 per vehicle

### Conclusion
To mass-produce a replica of the Model T in the modern era, the estimated cost would likely fall between **$6,000 and $10,000** per vehicle, depending on the level of production efficiency, material sourcing, marketing efforts, and compliance requirements. This is higher than the inflation-adjusted price of $5,333, mainly due to contemporary production standards, labor costs, and compliance with modern regulations.