Let’s say you are a car manufacturer CEO and you decide to develop and produce a new model. First of all you have to think of profit. But what happens when your plans are messed up and instead of earning money you lose a lot.
In the article below you will find the top 10 Europe’s biggest automotive money losers.
If you really love the automotive market, your first words will probably be “Veyron”. But that’s not true. Veyron is just the tip of the iceberg.
According to a research made by Sandford C. Bernstein specialists, the first place is going to (drums) first generation Smart ForTwo. It was build between 1997 and 2006 in 749.000 units. This amount of cars generated for Daimler a loss of 3.35 billion Euros.
If you wander why, I will explain you. The main reason was that the German manufacturer invested a large amount of money in the project, building new facilities, an all new platform and three cylinder engines. The first generation Smart ForTwo failed to meet the sales target by 40 percent. If you will do the math, Daimler has lost 4.470 Euros per each car seled.
The second place of the chart was awarded to the Fiat Stilo. The Italian model was built between 2001 and 2009. The public didn’t like this model and after 769.000 units built, Fiat had lose 70 2.1 billion Euros, with 2.730 Euros loss per vehicle.
The third place goes to the Volkswagen Phaeton. The German model was build just because Ferdinand Piech, VW chairman wanted to satisfy his personal whim. The car was produced between 2001 and 2012 in 72.000 examples. The total loss recorded by Volkswagen was 1.99 billion Euros, with 28.100 Euros loss per unit seled.
On the fourth place is Peugeot 1007 with 1.90 billion Euros lose. The chart is continuing with the first generation Mercedes-Benz A-Class, a car that generated 1.71 billion Euros loss. On the sixth place comes the Bugatti Veyron, a hypercar that generates 4.617.500 Euros loss per unit seled.
The top is completed by Jaguar X-Type with 1.70 billion Euros loss, Renault Laguna with 1.54 billion losses, and Audi A2 with 1.33 billion Euros loss. The last place was awarded to the Renault Vel Satis who generated 1.2 billion Euros loss for the French car manufacturer.