Bugatti making a loss per car- need evidence help!

[clipperjay]

You know, I reaslie that the Veyron wasn't a money making venture on Bugattis part, but it seems odd they were willing to lose so much on it - I mean if they set the price at say £1Million, or even more, I kinda doubt it would've effected sales very much!

I dunno just a thought I had!

Tom there proberly is not 1million pounds worth of material & labour in that car R&D set aside. They want a good name, reputation and when they make other cheaper lines for production it might be cheaper because they learnt a lot from the R&D before. Also they can't buy publicity like saying 5mill a car incomparision the car looks cheap for 800K odd or even 1m? OK they can/had bought publicity

Does anyone remember the XJ220? Same story it’s just now they have produced a lot main stream motors after that exercise.

[Tom H]

^ Yeah I understand all that  - all I meant is that the majority of people paying 800k for this car would have just as easily and happily paid £1m! And if they wouldn't there would have been pleanty of other people willing to snap them up - Also, a million just sounds like a cool amount to pay for a car - it would've probably made it more desirable to many!!

[clipperjay]

^ Yeah I understand all that  - all I meant is that the majority of people paying 800k for this car would have just as easily and happily paid £1m! And if they wouldn't there would have been pleanty of other people willing to snap them up - Also, a million just sounds like a cool amount to pay for a car - it would've probably made it more desirable to many!!

I don't know Tom an extra £300K sounds a lot to me mate? I'm sure the service on that motor might knock abit off 

[Tom H]

^ Yeah but lets face it, for lots of people buying Veyron is more about "my money pen*s is bigger than your money pen*s" than it is about the car! They're all going to be multi-millionaires. 300k is a Huge amount of money for likes of me and you, but to the average Veyron owner it's a drop in the ocean - and when Bugatti can jusifiably say that they're still selling the car at 1/5 the cost price it still sounds like a bargain -
Trust me I'm gunna be a stubborn as GuvGTI's mate that inspired this thread on this one! 

Edit: for God's sake - who decided that "pen*s" needed to be censord?! 

[DubFan]

Bugatti don't make many models, so they haven't got extra money coming in to cover the costs.
The last one I remember is the EB110 and that was several years ago.
But the stuff they developed, including the publicity and prestige will go forward to the next car and probably make them more money on that.

[Ben Lessani]

I was reading about the Veryon project a while back, from what I grasped they just about break even off the project - they don't plan to make a *big* profit off it, but they certainly don't intend to make a loss, regardless of the hype.

[Hurdy]

I'm with Clipperjay on this one.

The individual cost to make a Veyron becomes purely subjective after you factor in all the benefits:-

• Halo effect of having the world's fastest, best built supercar
• Engineering costs spent on R&D on the Bugatti eventually save money on R&D on the mainstream cars later on.
• A whole world full of free positive advertising for the VAG group.
  
  In my mind you cannot simply put a "cost per car" valuation on the Veyron. A "list price" is there to pull in the punters who want the ultimate supercar.