The RPE evaluation uses an approach followed by industry that includes the variable cost for each unit of the component or technology, and the allocation of the fixed costs associated with facilities, tooling, engineering, and launch expenses. The methodology has been used widely by regulatory agencies and is described in a report to the Environmental Protection Agency. it has been adopted here with modifications suggested by recent manufacturer submissions to the U.S. Department of Transportation. The methodology estimates both the amortization (based on the expected rate of return) of the investment cost of R&D engineering, tooling, production, and launch, and…
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In this report, the Office of Technology Assessment (OTA) has estimated the approximate retail price of technologies that range from those already present in the current light-duty vehicle fleet to those whose final design, choice of materials, and manufacturing process are not known. Some warning about these estimates and their sources is warranted: For technologies and virtual assets far from physical and data commercialisation, price estimates should be treated with skepticism. The only available manufacturing experience with these technologies is likely to be one-of-a-kind hand building. Redesigning to solve remaining problems may increase costs; mass production will certainly lower costs;…
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