Memorandum - NHTSA

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Total Capital or Fixed Cost
VI-13
The certification test equipment cost per lift for (Public-Use) manufacturer is estimated to be
about $20K-$40K per manufacturer and the total industry cost for test equipment will be
$120,000-$240,000 [(6 X $20K) to (6 X $40K)]. There will also be a one-time capital
equipment cost [e.g., lift improvement hardware) for tooling of $5K-$l OK per lift manufactur :r
(based on 2 lift designs) for the hardware items listed in Table VI-11 or $30,000-$60,000 [(6 3,
$5K) to (6 X $10K)] for the industry. The lift manufacturers are considered low volume
manufacturers making about 5-8 hand assembled lifts per day per manufacturer, on the averag.:.
The tools for assembly to meet the new FMVSS are low-tech jigs and fixtures used for drilling
holes. The total capital equipment cost for 6 lift manufacturers would be $150,000-$300,000
[($120K-$240K)+ ($30K-$60K)] for test equipment and tool/dies. Table VI-4 shows an
approximate $5 cost amortized on a 10 year production cycle that is passed on to consumer in
higher lift costs.
Table VI-4 Variable and Fixed Incremental Cost per Lift over 10 Year Production Cycle
MPVs >4.540 KE (10.000 Ibs.) GVWR and Buses
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I I '1
Cost Category 1 Amount (2001$) 1 # of Designs, # of Manufactui ersI
Certification Labor
Certification Equipment
DesigdProduction Labor
Tool and Dies
Tot. Variable + Fixed Costs
Cost per Unit Range
Average Cost per Unit
$55,897 (2 X 6 X $4,621) 2 Lift designs, 6 Manufacture 's.
$128,952-$257,904 6 Manufacturex
$128,952-$257,904 2 Lift designs, 6 Manufacture 's
$32,238-$64,476 2 Lift designs, 6 Manufacture,-s
$346,02 1-$636,163
$3.32 - $7.67
$5.50