What is the cost to manufacture the following list of engines?  The
list is two part, the first being Spark Ignition (e.g gas)and the
second being Compression Ignition (e.g. Diesel).  Please give a high
and low cost for each horsepower range for both Manufacturing Cost and
Selling Price.  Please give an answer for both Spark Ignition and
Compression Ignition for the following ranges of horsepower:

1 horsepower
3 ? 5 horsepower
10 ? 12 horsepower
18 ? 22 horsepower
70 ? 75 horsepower
95 -105 horsepower
130 ? 140 horsepower
175 ? 190 horsepower
220 ? 240 horsepower
290 ? 320 horsepower
475 ? 525 horsepower

Please send an email address that we can send a spreadsheet with this list.

My research as found no reliable data on the cost to manufacturer an engine.
One rule of thumb for a small compressor type product with 5 to 24 horsepower
is $38.29 per horse power. Autobile numbers are harder to derive because
because automobile manufacturer's are really assemblers of parts provided by
their parts suppliers. The cost of the parts is listed in a US Census Bureau
document recently issued called "Other Engine Equipment Manufacturing:2002.
The data is summary but with some estimates it can give some useful info. 

A Depatment of Energy study entitled "Comparison of Indirect Cost
Multipliers for Vehicle Manufacturing" shows the following breakdown
of an automobile's
cost structure:

Vehicle Manufacturing
   Materials                   42.5%
   Assembly                     6.5%
   Fixed Costs
     Transportation/Warranty    4.5%
     Deprec., Ads, R&D         21.5%
Selling                        22.5%
Profit                          2.5%
MSRP                          100.0%

This data does not show how much an engine cost, but using the two studies one
can do some reasonable estimations.

A study done by ASME called "A Study of emission policy effects on
optimal vehicle design decision" has a chart for spark ignition (SI)
engines. In
summary they say $1,000 for a 100 horsepower engine; $3,500 for a 300HP
engine and $15,000 for a 500HP engine.

If you have any data I too would be interested.

Best regards
Steve

Dear Steve,

Thank you for the thoughts.  It is very coincidental that we are both
working on the same project, without giving away too much to the
world, let's just say that we both know the same Don.  We certainly
will share any findings we receive with you, but will probably have to
use our Market Research people to come up with these numbers.  As you
know we are trying to revolutionize this industry with our new
technology, so these numbers are going to be used for benchmarking our
licensing agreements.

Cheers,
tom