Bugatti faces a big problem | FerrariChat

Bugatti faces a big problem

Discussion in 'Bugatti' started by NürScud, Feb 15, 2014.

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  1. NürScud

    NürScud F1 Veteran

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  2. TheMayor

    TheMayor Nine Time F1 World Champ
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    They need 50 people to pony up over a million bucks for cars that are already made and are going to replaced when sold out?

    Given they've only sold like 400 in it's entire life cycle, my comment is --

    Good luck on that one.
     
  3. amenasce

    amenasce Three Time F1 World Champ
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    I think they are build to order so the cars are not built yet. I believe they meant that they still need to sell around 50 cars and build them. Frankly i am surprised they are not done yet.
    Going to be hard as these are much more expensive than the 16/4. The Grandsport is around $2M without any personalization and the Vitesse is $2.5M..
     
  4. noone1

    noone1 F1 Rookie
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    Ha. Good luck with that. The Veyron is old news, looking a bit long in the tooth, and massively depreciating from what I've seen.

    The Veyron has been on sale in one form or another for the last 8 years. While it is a bit more expensive, the LF, 918, and P1 have collectively sold more than 1400 cars in the last year alone, and most to people who can easily afford a Veyron.

    There is very little demand for this car anymore.
     
  5. NürScud

    NürScud F1 Veteran

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    Good luck indeed!
     
  6. Smiles

    Smiles F1 World Champ
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    I'm not sure that's correct.

    The article says that Bugatti is sitting on $85M in inventory, mostly convertibles.

    They'll need a LOT of luck.

    Matt
     
  7. TheMayor

    TheMayor Nine Time F1 World Champ
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    Do you really believe that McLaren has sold out it's 300 P1 cas as they claim? I don't. I bet it's half that.

    There's a very limited market for these plus $1m cars.
     
  8. Hugh Conway

    Hugh Conway Karting

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    #8 Hugh Conway, Feb 17, 2014
    Last edited: Feb 17, 2014
    I didn't read it that way at all. And the press release in December sounded more like build slots remaining
    And if you look at the original Bloomberg piece the Automotive press echo chamber regurgitates from:
    http://www.bloomberg.com/news/2014-02-13/bugatti-needs-scary-fast-veyrons-to-fly-off-the-lot-review.html
    It would appear the press is now doom and glooming. Regardless through Q3 2013 (last quarter they've published data for, 2013 FY results are out soon) sales were up from 2012 to 28 and if they truly sold the 400th in December that's at least 40 for the year which would be the best since 2010
     
  9. amenasce

    amenasce Three Time F1 World Champ
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    From what i have been hearing from friends and their dealers (how many cars they are delivering), i believe they have or are very close. The dealer in Greenwich alone is delivering more than 10 P1.

    That's why i am surprised the Veyron has not sold out yet. A friend who lives in MC said he saw 50 different Veyron in between June and Spetember alone so i thought they were done.
     
  10. Smiles

    Smiles F1 World Champ
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    #10 Smiles, Feb 17, 2014
    Last edited by a moderator: Sep 7, 2017
    So how did you read this?
    Image Unavailable, Please Login
     
  11. noone1

    noone1 F1 Rookie
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    My interpretation was that they are sitting on $85M worth parts inventory that is waiting to be turned into cars. I can't imagine building these cars when almost all of them are custom ordered. If you think it's hard selling a $2.5M car, try selling a $2.5M car that isn't a personal spec.
     
  12. Hugh Conway

    Hugh Conway Karting

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    #12 Hugh Conway, Feb 17, 2014
    Last edited: Feb 17, 2014
    I read it as lazy reporting. The source of that article - as listed by them - was the Bloomberg article I linked above. It said nothing about inventory at all, just a crap car review! It calculated out the sales value of a 50/50 product mix and 40 remaining models. Exactly. 20GS @ 1.435 million euro, 20 Vitesse @ 1.69 million euro = 62.5 million euro, the exact figure they quoted. Both the mix and the number remaining in an estimate. I'm not a fan of the car, just hate lazy reporting. I'm baffled that they continue to move cars at all for the past several years; as such I've no basis to doubt further sales.
     
  13. Gmaccormack

    Gmaccormack Formula Junior

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    Anyone still believe that vw is loosing millions on each car? Seems funny they are disparate to sell 40 more cars they claim will loose several million on each. Whoever came up with that bit of marketing deserves a raise.
     
  14. F2003-GA

    F2003-GA F1 World Champ
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    It doesn't matter what the Media is speculating Unless Bugatti themselves confirm this
     
  15. Smiles

    Smiles F1 World Champ
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    You're right. It is lazy reporting. And I'm just as baffled that they can sell any cars in 2014.

    Right also.

    Matt
     
  16. Bas

    Bas Four Time F1 World Champ

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    Good luck. The new breed of supercar has well and truly outdid Bugatti. They accelerate faster, handle better (P1 is >500kg lighter than a Veyron, and how it changes direction on track is nothing short of spectacular!), are (WAY) cheaper in maintenance (No silly rule on tires that only last 2500 miles and rims that need replacing every 7500...and then the cost involved on said tires and wheels!). Veyron's only selling point is top speed. All good and fun, but apparently only 1% of Veyron owners have done top speed (with I believe 290 sold, that makes a rounded of 3 owners!).


    Bugatti has well and truly been outdone (by the P1 at least, and I suspect the LaF is not far behind).

    Those ~60 Veyrons will remain unsold. All they can do i rack up the boost and go for 1600hp to try and sell them. And still they have to limit them electronically to ~Veyron SS speed...
     
  17. noone1

    noone1 F1 Rookie
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    I think it was clever marketing to mean it costs more to develop than they stand to make. If the spent $1B developing it and only earning $500M on the cars, then in theory they are selling cars at a loss.

    I'm sure they make a very pretty penny on each sale with respect to production cost. Adding in development cost is another story though.
     
  18. starboy444

    starboy444 F1 Veteran

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    When the Veyron came out years ago, it was marketed at being an ultra exclusive limited production car, then the demand was so large, they turned it into a semi-production, then built a custom factory in France to turn into scheduled production. Margins on the cars are too small, and orders are slowing too fast, not enough $ income to repay the capital investments.

    Bad business decisions by Bugatti ... they should have learned from Ferrari. IE; manufacture a limited amount, sell them out immediately, and make 50% margin on each car in order to re capture your costs, and make a tidy profit. Then shut that production down and then repeat 7 years after with a different car, but similar strategy !
     
  19. Madaboutred

    Madaboutred Karting

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    Veyron has lost its momentum. Period.
    From exclusive to the filthy rich it now is sold second hand to east africa warlords.
    The word overplayed describes just the situation.
    Even to me, who can not afford one, is now just another bulky lady in the bar with lotts of promises and a seductive manner that you would really like to take advantage of but surely wouldnt want to be seen with in public.
    If it kept the mysterious and limited profile, it would still be a poster in young boys rooms.
    It even lost that priviledge.
    Can I afford one? No.
    Do I care? NO.

    Another would have been legend IMHO
     
  20. Bas

    Bas Four Time F1 World Champ

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    Thing is, the 16.4 was going to be a limited model but they never sold all of them. So then they made a roadster, still didn't sell them all, then a supersport....you can see where this is going.

    Just about every model is a limited edition one now, except for the original. I think a lot of people where pissed off buying a one of xxx and then suddenly 20 different 'more limited' versions came. Like it or not, a lot of people are in the car game for the money...

    One of the guys told Harry Metcalfe that they don't even approach people with a net worth less than 300m for test drives etc. That's just stupid...those are the guys that could've anyhow if they wanted it, if they didn't buy then they won't buy now either.

    They did mess up, they went about the whole thing wrong. It was their concorde moment, but I don't think they'll ever capitalize on it such as Mclaren (with the F1) or Pagani.
     
  21. Phil~

    Phil~ F1 Rookie
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    When they get to 250k ill buy one :)
     
  22. saklucik

    saklucik Karting

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    10 p1 's going outta Miller Greenwich!!? If so damn I can't wait.


    Sent from Samsung s4
     
  23. starboy444

    starboy444 F1 Veteran

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    #23 starboy444, Feb 21, 2014
    Last edited: Feb 21, 2014
    +1

    Exactly what I meant... Bugatti should have learned from Ferrari, Mclaren, Pagani on how to manufacture a real "limited edition" supercar.

    Ferrari had been in that game for years.

    McLaren was still a 200 employee company when the F1 was built.. a small but excellent
    car company for its time

    Pagani is the "Patek Phillipe" of cars... privately owned and operated, small company but incredibly creative, precise and valuable products.

    Bugatti is corporate owned (VW) trying to tie into a niche market, but with tens of millions of overhead costs and too many VP and COO's steering the company... Can't manage to figure out properly how the companies mentioned above do it.

    The next step for Bugatti is to create an SUV, or luxury Sedan, seems the obvious result for a misguided luxury brand!
     
  24. Madaboutred

    Madaboutred Karting

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    But, didn't they try to release the 16c Galibier some years ago and it never happened?

    In my country they say "a gypsy in a kings clothes, is nothing more than the king of gypsies"

    No "class" in management quarters.
     
  25. ross

    ross Three Time F1 World Champ
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    i have never liked the veyron. but i would own one if it got low enough. 20 years from now they will be worth plenty more.
     

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