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(3) I agree that much of the labor occurs outside of the assembly plant at suppliers. However, based on my experience (not hard data), if you look at what goes into a car (both purchased parts and those built at the plant), I think it is safe to say that materials are a much larger portion of the cost than labor. I know for sure that is true where I work. I'll see if I can find some data to back this up somewhere.

My guess would be about 2.5 to 3 times Direct Labor...
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