Anyone know what the actual cost is to building a Ferrari. I was having a discussion with a friend about cars and he mentioned that the pick up truck is incredibly profitable for auto makers as the cost of making the basic truck is about $5,000- $7,000.
Let's take the recently debut 488. Did it cost $100,000 of materials to build it or $200,000? or??
I worked for GM before starting my own business. At the time, it was the largest engine plant in the world. The amount of cost for tooling would absolutely blow your mind. And, the auto industry is so fast paced - they cannot wait until the product design is complete to start the equipment design and build - they happen simultaneously and that results in lot's of changes to the equipment which adds substantial cost. So, when you look at a company such as Ferrari, while the price of the car is much more, the volume is so much lower that the tooling cost cannot get as easily amortized across the volume.
I've been in manufacturing my entire life and I still do understand how the large companies make money.
Ferrari make a nice but not huge profit on each standard production car. Cost to buy one without taxes is €160k, say $175k. I would guess the manufacturing cost including development cost would be roughly $130k - $140k per car.
Where they make the big bucks is the low volume specials. The cost for developing the F12 Tour de France is much much lower than the F12Berlinetta. On these cars they would easily make $150k profit. Just think how many Scuderias were produced... Then there are the one-offs like the SP12, which cost well over $3 million but which can't be costing more than $1 million to make. The business model for the FXXK and 599XX is very healthy too. Finally, they have their branding (clothing, perfume, watches etc) which makes up a huge part of the net profit each year.