Bugatti Costs Volkswagen $2.3 Billion, Loses $6.25 Million on Every Veyron Sold
We knew that the Bugatti Veyron experiment was expensive for Volkswagen, and that the Veyron’s substantial price tag of roughly $2 million is eclipsed by the per unit cost, and now we finally know the numbers. According to an article appearing on The Economist, Volkswagen has lost a total of €1.7 billion ($2.3 billion) on the hypercar manufacturer, and each Veyron sold nets a loss of €4,617,500 ($6.25 million). Thanks to Jalopnik for the scoop.
The Bugatti Veyron, with its 8.0L quad-turbocharged W16 engine, has earned the distinction of being the world’s fastest and most expensive production car since its debut in 2005. With a magical 1,001hp on tap, the car set a top speed record of 253mph, which was later broken by the 1,200hp Veyron Super Sport at 267mph. Achieving the goal of the world’s fastest production car was never assumed to be an inexpensive proposition, and the car weighs in at over two tons, even with extensive use of lightweight but expensive carbon fiber.
Bugatti attempted to offset the substantial cost of the program by creating special edition Veyrons for specific markets sold at a premium, including an Hermés-branded model and a “Legend” version. Most were little more than unusual exterior color combinations and slightly different leather appointments, but the price tags of these limited edition models helped Volkswagen recoup some of its losses. Even so, VW could never sell the Veyron for anything close to the actual cost of the vehicle, but they have enjoyed quite a bit of fame in the process.
Even people who don’t usually pay attention to the world of automobiles know what a Bugatti Veyron is, and the car is all about sticker shock. 1,000 horsepower! A top speed of over 250mph! a price tag exceeding a million dollars! James May from Top Gear famously tested the Veyron’s proclaimed top speed and found that Volkswagen wasn’t full of hot air. Most automakers would kill for that kind of press and attention, and Volkswagen enjoyed it easily. All it cost them was $2.3 billion.