Discussion
I would be interested to know the economics of running a niche prestige car company such as Aston Martin.
I raise this subject as Ferrari have decided to limit their numbers and up their prices.
I think this may give Aston a fair chance as their prices are considerably 'cheaper' than Ferrari ,more in line with Porshe.
I think Aston will need to introduce a 4WD model as the Cayenne is Porsche's best seller,makes a lot more sense than the Cygnet
If Aston can keep their popular models between £80 - £130K they will maintain their price advantage.
I think Jaguar's new F type is too expensive for the base model and generally too near the Aston V8 price which has a more prestigious appeal.
Within the next 5 years Aston will also need to re style the Vantage and DB9,nothing too dramatic but obviously different.
I am concerned that Aston are reaching £200k + with the Vanquish and this may signal price inflation.
I raise this subject as Ferrari have decided to limit their numbers and up their prices.
I think this may give Aston a fair chance as their prices are considerably 'cheaper' than Ferrari ,more in line with Porshe.
I think Aston will need to introduce a 4WD model as the Cayenne is Porsche's best seller,makes a lot more sense than the Cygnet
If Aston can keep their popular models between £80 - £130K they will maintain their price advantage.
I think Jaguar's new F type is too expensive for the base model and generally too near the Aston V8 price which has a more prestigious appeal.
Within the next 5 years Aston will also need to re style the Vantage and DB9,nothing too dramatic but obviously different.
I am concerned that Aston are reaching £200k + with the Vanquish and this may signal price inflation.
I would imagine that Ferrari is a loss-leader for Fiat. Same as the F1 team.
Sure, the sale of cars will cover the Opex, but I bet it wont cover the Capex.
Or to look at it another way:- Take an average AM price of say GBP120k. Deduct VAT, other taxes, deduct the Dealer margin, deduct the cost of sales for manufacture and distribution and I bet AM are lucky to make more than GBP15k per unit. 15K on say 4000 units.
Now GBP60M per year tops over say 5 years, 300M is nothing in car manufaturing and tooling - especially in the high performance bracket when you have to develop at least two Coupes and two volantes from scratch.
Mugs game if you ask me.
Sure, the sale of cars will cover the Opex, but I bet it wont cover the Capex.
Or to look at it another way:- Take an average AM price of say GBP120k. Deduct VAT, other taxes, deduct the Dealer margin, deduct the cost of sales for manufacture and distribution and I bet AM are lucky to make more than GBP15k per unit. 15K on say 4000 units.
Now GBP60M per year tops over say 5 years, 300M is nothing in car manufaturing and tooling - especially in the high performance bracket when you have to develop at least two Coupes and two volantes from scratch.
Mugs game if you ask me.
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