What is the Bugatti business model? | FerrariChat

What is the Bugatti business model?

Discussion in 'Bugatti' started by BoulderFCar, Oct 27, 2007.

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  1. BoulderFCar

    BoulderFCar F1 World Champ
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    Dec 16, 2004
    12,196
    Asheville, NC/Ft Lauderdale
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    Tom
    I was at the Lambo dealer this week and head tech had just returned from France for service training on the Veyron. He said the training was very well done and complete. They essentially had a car they could disassemble and put back together again. Huge costs in the training and support. I'll be a little off on the numbers but there are about 18 Veyrons in the U.S. and 30 or so in Europe which leads to my question. How could it be a profitable model that is sustainable? Spreading all of the infrastructure, R&D and the very expensive production cost over so few cars has got to be a loser. Bugatti as a one trick pony isn't leveraging the veyron to sell other things that I know of.

    So what is the sustainable model? I just don't see anyway they could have enough top line revenue to make any money.

    As an aside, not a cheap car to service not that a buyer would car. 2-3 days of labor to install spark plugs. I read the manual on window alignment and it looks like it would be a 5 hour bill for each window to follow the manual.
     
  2. Miura Jota

    Miura Jota F1 Rookie

    May 26, 2004
    3,632
    Toluca , Mexico
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    Martin

    Either :

    1 you gotta be kidding or ...
    2 those cars better never break.
     
  3. BoulderFCar

    BoulderFCar F1 World Champ
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    Dec 16, 2004
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    The tech works for Lambo and maintains and has been around some amazing collections. He was floored by the Veyron. The windows are aligned to .04" with a micrometer and then checked with a sound generator in the car and a db meter outside at the seems. Insane.
     
  4. menoy

    menoy F1 Rookie

    Mar 12, 2005
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    MRodziewicz
    It isn't (yet?). They lost on the Veyron big time, but that was probably known from the start - it was more a technological and marketing showcase. Altogether 300 Veyrons are to be built - but we don't know about any future models. Probably a big high end luxury 4door is due and a smaller (sub Veyron) coupe. First might share components with Bentley, while the second with Lamborghini. Also, rumour is that Bentley dropped the Veyron's W16 into a development Arnage and this model may in the future see production (although probably with less than 1001PS)
     
  5. Emil

    Emil Formula Junior

    Jul 20, 2006
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    Emil Ahmed
    anothey way of looking at it,may be to cut tax charges etc??

    since they're are clearly making a loss on each car,they can pay less tax and stuff?
    i know with prototype cars they get crushed in the UK to claim the VAT back (VAT is value added tax)
     

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