VW loses $6.2 million on every Bugatti Veyron sold.
 

"the Volkswagen Group has lost $2.2 billion on the hand-built, 16-cylinder Bugatti Veyron since its launch in 2003. But unlike all other vehicles, those losses came on sales of only 367 cars ? meaning that despite charging a minimum of $2 million for each Veyron, VW had taken an average loss of $6.2 million on every one."



"Despite those costs, the Veyron isn't the largest financial calamity created by an European automaker. VW's own Phaeton sedan, another Piech attempt to move VW upmarket, has lost $2.7 billion. And Berstein reckons no model has even failed worse than the first-generation Smart fortwo, a joint venture between Mercedes and the Swiss watch brand that fell wickedly short of sales expectations. Between a new factory, all-new models with no shared parts and new dealerships, Mercedes lost $4.5 billion on Smart between 1997 and 2003, a level of futility that may never be matched. Henry Ford would have known better."



http://autos.yahoo.com/blogs/motoram...204551966.html

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Interesting article... I guess you don't know how well it does until you try.

they lost big on the Corrado too, and thats now a cult classic and marvel of engineering among vw nuts. good stuff never goes appreciated even if its ahead of its time.

as for the Phaeton, its the same car as the Bentley (which VW also owns) and wasn't meant for a long production run, more like a transition car to workout he bugs in a new plant before applying the bentley wings on the new model currently in production. one brand washes another in the congolmerate of VAG (vw/audi/porsche/lambo/bentley) monster. honestly there cars are not what they used to be but they're more stable and sterile now and thats has enthusiasts jilted.

A few years back I figured Phaeton was a "poor mans' " :D Audi A8, until I noticed a W12 badge on one and stopped for a better look.. definitely not just a "larger Passat" as some call it.

@shimmy - agreed on corrado, I had one a long time ago and still hate myself for selling it.. This new scirocco is not as bold. wouldn't mind an A5 though :)

When I'm 90 yrs old and can afford to pick up a 40 yr old used Veyron for dirt cheap...I'm gonna drive around our little town with the left turn blinker going.

I'd be curious to understand their math when calculating the $6.2 million loss per Veyron sale.

They could have a 10 year ROI for their development cost, and it ends up being a $6.2 million loss per car until that point... in which they start making a profit.

Who knows?

One thing is certain; VAG is not stupid. They would not continue a product if they did not see light at the end of the tunnel.

Is VW run by Ben Bernanke now?

hmmm, must i feel bad, having bought a Bugatti veyron, causing vw such a loss? :pimp

The Veyron is a marketing expense...

The Phaeton became over the years quite successful in China so they changed plans and instead of dropping it, the new model comes in 2015 (the current one is actually quite good already)

And overall VW is on a good way to become the biggest car manufacturer of the world :)

phaeton is an Audi A8. which is a long term production car.

I know that they borrowed some of the drivetrain systems from the A8, but I thought that they built it on the Bentley platform. It was supposed to have been their answer to challenge the BMW and Mercedes Luxury sedans. I think it was Jeremy Clarkson who was talking about the list of 10 demands that Ferdinand Piech said the car had to meet. Something about torsional rigidity, and amount of cabin noise etc.

I was actually considering grabbing a pheaton as a winter beater. You can get a 2003-2004 for like $10k now

Even the company has to pay to play. Sheesh!

Don't worry for them.They made enough with the Golf's to support this loss.

they'll never be dirt cheap

:1orglaugh:1orglaugh:1orglaugh Awesome! :thumbsup

Perhaps not.

But then again...I'll probably never live to be 90, either. :1orglaugh

have you ever seen a phaeton in person? its chassis much wider than an A8. no joke the hood alone is probably wider than the A8. i better stop i'm arguing on the internet </futile>

Lots of monies for one car

My mind initially went to the "marketing" side of this .. but I'm just going to go ahead and say it..

Bugatti Veyron is an ugly car. Sorry.

Just one of these prestige projects where you just eat your loss cause you can

Fuck the veyron, VW needs to go back to making these bad boys..

http://www.adventure-journal.com/wp-...Syncro-351.jpg