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

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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?

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Anonymous 0 Comments

You need to consider a super-car brand is not an entity on its own. But a simply a brand of an even larger car company with many purposes.

One of these is marketing. Setting records, the brand can act entirely as marketing for the main brand. Millions on a few cars, compared to billions on marketing campaigns.

Another is these cutting edge technologies can act as R&D units and as such can get tax incentives on a much more flexible and faster acting company structure.

Finally, the list price is not often the only way a company makes money. These cars are often bundled with services such as very expensive servicing, tuning and all manner of extras and personalisations. Finally there’s apparel and merch. Caps and t-shirts with Ferrari (fiat/Chrysler) and Lamborghini (VW) may be more profitable than the car selling business.

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