
Direct vs. Indirect Manufacturing Costs: How They Drive Vehicle Pricing
Ryan Mitchel
October 29, 2026
Key Takeaways The sticker price on a new vehicle reflects far more than the parts and labor that physically build the car Automakers divide expenses into two broad buckets, and understanding both is key to decoding why cars cost what they do Overhead expenses like research, marketing, and dealer support can nearly match the raw


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