McKaren Mp4-12

[Welshbeef]

This is being sold at £168k and first year expected sales are 1,000 units therefore £168m first year
R&D costs £500m and new production line £50m so a total £550m

So given it's only 6 months of this year let's assume 2,000 units next therefore it's going to take c2.5 years assuming 2k units a year.

How long do they really expect this model to exist for?? Doesn't the ferrari f430 have a max 4 year life cycle? And clearly sales wane towards the end of it's life cycle.

It's duh a risk with mage leave costs if it doesn't work it's a game changing event. Buggered

I wonder if any of the R&D will be for other cars ?? I doubt it.

[R500POP]

I suspect much of it is laying the foundation for the range of McLaren sports cars.

[300bhp/ton]

Welshbeef said:

This is being sold at £168k and first year expected sales are 1,000 units therefore £168m first year
R&D costs £500m and new production line £50m so a total £550m

So given it's only 6 months of this year let's assume 2,000 units next therefore it's going to take c2.5 years assuming 2k units a year.

How long do they really expect this model to exist for?? Doesn't the ferrari f430 have a max 4 year life cycle? And clearly sales wane towards the end of it's life cycle.

It's duh a risk with mage leave costs if it doesn't work it's a game changing event. Buggered

I wonder if any of the R&D will be for other cars ?? I doubt it.

There must be more to it than that, as you are not counting any profit margin nor any other costs and over heads, such as materials, labour to build, marketing, rates, tax, wages, etc.

I think R&D costs are sometimes touted about like a badge of honour rather than anything meaningful.

[flemke]

Welshbeef said:

This is being sold at £168k and first year expected sales are 1,000 units therefore £168m first year
R&D costs £500m and new production line £50m so a total £550m

So given it's only 6 months of this year let's assume 2,000 units next therefore it's going to take c2.5 years assuming 2k units a year.

How long do they really expect this model to exist for?? Doesn't the ferrari f430 have a max 4 year life cycle? And clearly sales wane towards the end of it's life cycle.

It's duh a risk with mage leave costs if it doesn't work it's a game changing event. Buggered

I wonder if any of the R&D will be for other cars ?? I doubt it.

Am in a bit of a rush, but R&D would be much lower than that.
Also, numbers that matter are marginal cost of production per unit and numbers of units. Can't use RRP - you have to take out tax, then there is price per unit to McLaren (paid by dealer). Furthermore, options and aftermarket parts & service are major components of profit in most car business models.
Finance is as well. You'll say, "If you can afford one of these, you won't need to borrow to buy it", but you might be surprised at how many losers on the south coast try to look well-off when they're actually scrabbling from week to week.