5. Specific data requested.-Manufacturers are requested to report the estimated value of each change listed in B. 2., above, based on : a. For new features-All direct and indirect costs incurred for manufacture or purchase of components, assembly and installation of the feature, plus the established company, mark-up to selling price that is applicable to passenger cars. This applies to all items which represent entirely new features installed as standard equipment; i.e., do not replace or modify any previously existing feature installed in cars in the same or comparable series: b. For all items that replace or modify some previously-existing feature on cars in the same or comparable series-net difference in value, i.e., after estimating value, as defined in 5. a. above, for both the old and the comparable new feature, report the net difference; c. For items previously optional but now made standard-both option prices and estimated value, as defined in 5. a. above, plus percentage of cars on which installed at factory in previous year. Also, similar data for items which previously were standard, but now are made optional at extra cost. 6. Mark-up to retail.-In general, especially with respect to structural and engineering changes, the reported values will have been markd up to wholesale prices. Where associated change have not been grouped by manufacturers in their reports, they will be so grouped by BLS, and the net value of all changes in an assembly or component will be used. The retail value will be obtained by marking up the wholesale value by the ratio of the manufacturer's suggested retail delivered price for the equipped car (including Federal excise tax) to the price charged by the manufacturer to the dealer (without Federal excise tax) for the identical car. 7. Warranties.-Changes in warranties have been accepted by BLS as representing changes in value to automobile consumers. Extensions in either coverage or duration were considered improvements for which downward adjustments were made in quoted prices. Following the same principle, any reduction in warranties will be the basis for upward price adjustments, Manufacturers are requested to provide details of warranty changes and the value thereof. C. Handling special situations No guidelines can cover all situations that will arise with respect to changes in a product as complicated as an automobile. Experience has shown, however, that certain types of special situations can be anticipated, as follows: 1. Essentially new type of car.-Occasionally, product lines are changed so radically that it is not feasible to establish comparability of a current model with any previous model. Such situations will be handled by treating the new model as if it were an entirely new product; i.e., linking it into the index. 2. Changed quality not proportional to estimated value.-Occassionally, new technology makes it possible to achieve recognizably better quality at no increase in cost, or possibly even at lower cost. Since no satisfactory technique has been developed for placing a value on such a change, it will be ignored and prices will be compared directly. 3. Inadequate information.-In some cases, manufacturers do not find it feasible to supply adequate information regarding costs involved in a quality change. If the quality change is minor, it will be ignored and prices will be compared directly. If it is a major, the BLS will estimate its value from any pertinent information or advice available. О REDESIGNATE THE DEPARTMENT OF THE INTERIOR AS THE DEPARTMENT OF NATURAL RESOURCES HEARINGS BEFORE THE SUBCOMMITTEE ON OF THE COMMITTEE ON GOVERNMENT OPERATIONS NINETIETH CONGRESS FIRST SESSION ON S. 886 A BILL TO REDESIGNATE THE DEPARTMENT OF THE INTERIOR AS THE DEPARTMENT OF NATURAL RESOURCES AND TO TRANSFER CERTAIN AGENCIES TO AND FROM SUCH DEPARTMENT 88-889 OCTOBER 17, 19 AND 20, 1967 Printed for the use of the Committee on Government Operations LAW LIBRARY U. S. GOVT. DOGS. DEP. APR 1 1968 UNIVERSITY, DE CALIFORNIA U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1968 |