Study Shows Ferrari Rakes In $80K In Profit Per Vehicle - Jaguar/Land Rover Just $900

Not all reports of profit are real profit....just saying.

In other words Maserati makes more profit per vehicle than Hyundai or Kia. They are currently at just under 10% and are expected to reach just over 13% in the coming years putting them on par with MB, bmw and Audi

Business 101: Profit is affected by what you claim to charge against it.

Taxation 101: Make your profit as small as possible on paper to avoid taxation.

Cars 101: Manufacturers are known to take great liberties in their reporting.

To Quote...

"...Interestingly, Bentley is currently generating losses of about €17,000 ($19,715) with each new car sold, but the reason for that, according to a spokesman for the company, is that the automaker is investing heavily into electric car technologies. The situation is similar with Tesla, which loses about €11,000 ($12,757) with each new car sold. Companies like Rolls-Royce and Lamborghini are keeping their financial results closed for the public and are not included in the survey..."

Conclusion - Bentley loses $12K+ per vehicle sold (ahem - surprised its that low considering $20 to $50K cash on the hood for each one sold) and RR and Lambo won't disclose. IMO - the Sport/Luxury market (Ferrari excluded) is oversaturated and ripe for consolidation.

Any guesses how much cash on the hood will be required to move the RR Cullinan/Cunanan once it hits the market? My bet is $75K to $100K. You will be seeing unsold Cullinan's on Ebay in the door-stop category.

YOu are forgetting - Rolls is a custom car manufacturer - they really do not make large quantities of unsold cars that they have to "move". The Cullinan will sell in large quantities because it has the prestige of a ROlls -and Rolls will make as many as it can sell - or maybe fewer - they do not really have the ability to greatly increase car production. My Guess is how much MORE you will have to pay to get a Cullinan than the "sticker price" in the first year - likely they are already sold out anyway.

AS far as Bentley - my bet is that the Electrification is a Corporate entity - and Bentley makes a tidy profit on every car it makes - as does Lambo. Unlike TEsla - whose only products are EVs - VW makes so many different brands that it would not make sense for EACH of them to have a department to develop EV technology. The germans are not that stupid.

TomM - Brands need to make money/profits to survive long term - if you will recall, that's why Bentley went to VW and Rolls went to BMW.

While there is certainly some kind of 'vanity cachet' to owning a brand like BMW or Rolls, eventually they will be scaled back, sold, or shut down if they are not economically viable. I suspect that neither brand is very economically viable. They are niche products which while certainly "custom", sometimes are less successful at being vehicles than less costly vehicles.

Keep enjoy your Rolls though. Or is it a Maybach? Or is it a 450SEL 6.9? Remind us of the contents of the motor pool that occupies space in your garage.

We'd enjoy a discussion about what you think are the pro's and con's of each vehicle.

Ferrari is a complete exotic manufacturer - they do not have to consider price when making cars - and can set a price easily - since most of these really exotic cars are even more expensive.

Ferrari does not have to boggle your mind with millions of dollars of advertising for their cars - their car runs are largely sold out before they make car one.

The "stupid idea" that you should make your profit as small as possible to avoid taxes is a non-starter. I would rather make 60% of $80,000 than 100% of ONE dollar - and so would the manufacturers.

It's called write offs, you idiot, and it's how you keep more of your profit to yourself.

or as insurance companies capped at 20% profit by law, create future research project to dump excess cash in.

Coco Chanel once said "The best things in life are free. The second best things are very very expensive!"

As The Beatles sang in a borrowed song: "The best things in life are free, but you can keep 'em for the birds and bees. Now give me money; that's what I want."

I'd definitely rather have the cash in hand than the shiny thing.

We should not forget that a high % of Rolls sales are bespoke cars with a great deal of customization. $500k, $750k, $1M+ is not uncommon for a Phantom that has been made to suit the very particular tastes of a client. I would suspect their margins per unit are quite healthy.