Production Cost

"Menebrio" (menebrio) 09/30/2013 at 13:00 • Filed to: Supercars, Production Cost, Bugatti

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Would you pay over U$ 7.5 million for a car?

That's what the actual price for the Bugatti Veyron comes out to be if Volkswagen had decided not to take a loss at the production of the car. So when you come to think about it, the ultimate super car is actually a bargain at the current purchase price of over U$ 1 million.

VW knew its Bugatti Veyron, a quick and complex supercar made in tiny numbers, would not make money but hoped it might burnish the brand. -Sanford C. Bernstein (brokerage firm)

Although the Veyron has put the spot light on the Bugatti brand, it seems odd it hasn't spread the losses with the Galibier. After all the Veyron is over 10 years old and yet remains at the pinnacle of motoring technology.

Not every project can get the backing from a big firm like VW and even if they are at the high end of car manufacturing (Ferrari, Pagani, McLaren) banking a big loss for image would be suicidal especially given the current economic climate; "CARMAKERS in Europe are facing a rough ride, with sales at a 17-year low region-wide." That might be a reason why in some aspects the current crop of super cars (LaFerrari, P1, 918) might match the Veyron, but not surpass it.

To put it in to perspective here are other cars that had huge losses. Although none compare to the loss per unit of the Bugatti, they can compare or be better at losing money by their production volume. Who would have thought the Smart would be more expensive (loss wise) than the world's fastest production car.

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Jagvar > Menebrio 09/30/2013 at 13:11

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Phaeton represent!

Oh wait. That's a bad list to be on. :(

Victorious Secret > Menebrio 09/30/2013 at 13:13

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Yup.

If I had the funds, why wouldn't I?

To someone with the kind of money it takes to own one, they wouldn't care.

Meatcoma > Menebrio 09/30/2013 at 13:20

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Better yet, if you buy a car for 7.5 million and as soon as it leaves the lot, it is worth only 1.3, would you still buy it? You basically lose 6.2 million for buying it.

Saracen > Victorious Secret 10/04/2013 at 16:59

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That is a point lost on many, many internet trolls.

Victorious Secret > Saracen 10/04/2013 at 20:14

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So true, and so sad.

People with such money, costs are no concern to them. Sure, rich people don't get rich by blowing money but if someone can have a garage worth 10 million, chances are they aren't batting an eye at adding to their collections.