Have you ever wondered why a carmaker would venture to create a million-dollar car? Volkswagen loses an estimated $3-$6 million on the sale of every Bugatti Veyron, so it cannot be an easy task and does not seem to exactly lead to a profit. So why has almost every exotic carmaker out there created at least one 7-figure machine?
The Koenigsegg One boasts the perfect power-to-weight ratio of 1.
The answer is not completely cut and dry, but it is because people will by the million-dollar-plus vehicles. While it does not seem like anyone in their right mind would willingly ‘lose’ money to cater to the buyers–it is important to understand why. There are over 3-dozen billionaires (yes, millionaires with a ‘B’) in the world. Manufactures must cater to their unique desires in terms of their automobile collections. While it is quite common for them all to have numerous Ferrari, Maserati, Rolls-Royce, Lamborghini cars and more– they require that bespoke centerpiece vehicle that no one else can have. That is where the million-dollar car offering comes into play. Creating these exquisite dream machines for billionaires leads to a solid and long-term relationship between the carmaker and the buyers, wherein they will buy more vehicles, evening out the loss impact over time. It also maintains quite a brand following, which is never a bad thing.