How do companies like Bugatti, Rimac and other supercars make money?

Question

Given that they only produce a handful of cars a year, and sell them for $2-3mil, how do they still make enough profit to cover all expenses?

In: 6

Answer 1

Bugatti sells about 100 cars a year, so that’s about $200-300m in revenue. Production costs are high, development costs are high so it’s true that there may not be much product margin.

But nowadays, Bugatti is owned by VW Group, so gets some benefits by relying on assistance from their parent company. R&D may be partially shared with Lamborghini or Bentley. They can buy steel, aluminum, and other components/materials in larger quantities with their sister companies (Lambo, Audi, Bentley, VW, etc.).

There are also likely large licensing fees collected for all sorts of Bugatti-logo apparel, toys, etc.