how to build a supercar

[node]

Incase any of you missed it, this was on last night.

Documentary following Formula One racing team McLaren as they build a road car, the MP4-12C, using some of their cutting-edge F1 technology.


http://www.bbc.co.uk/iplayer/episode/b017t722/How_...

Edited by node on Monday 21st November 15:00

[ThatPhilBrettGuy]

Glad they told us the engine was 2 4 stroke engines going together. I had to check at one point I wasn't on CBeebies.

[bernhund]

I happened to catch the program about 10 minutes in, by the end I was wondering how much Mclaren paid for the advert and how many lines were put in the mouths of the staff! Real propaganda stuff!!

[Adrian W]

only thing I gleamed from it was, if they make 4000 cars a year they are going to drop like a stone.

My nine year old thought it was great!

[node]

Adrian W said:

only thing I gleamed from it was, if they make 4000 cars a year they are going to drop like a stone.

yep thats what i thought too when i heard that.

[Dr K]

The other issue I can't get my head around is the £800m investment! I know that there are significant 'income streams' to the company but how many cars do they have to produce and at what profit to break even?

[Hollowpockets]

Adrian W said:

only thing I gleamed from it was, if they make 4000 cars a year they are going to drop like a stone.

My nine year old thought it was great!

Perhaps that 4000 a year includes a number of the 'next' model to be released. If not, hopefully a mp12 won't be too far out of reach in 3 years time.

[joust]

Dr K said:

The other issue I can't get my head around is the £800m investment! I know that there are significant 'income streams' to the company but how many cars do they have to produce and at what profit to break even?

In simple maths, 4000 @ £100k gross profit is £400m. Looks a pretty canny investment to me as the £800m will also be a gross figure.

If they just do 10% net margins it's still a pretty cracking return.

J

[Gadgeroonie]

4000 cars per year is pretty full on

i am not sure they will sell that many at 180k ish a pop

maybe they will - maybe they won't

the car will hardly be exclusive at those volumes

(i think they will be offering them at significantly reduced prices just to get rid of them in a few years time)

---

I enjoyed the video, the accoustic guy has a pretty cool job !

[BobE]

Amazing attention to detail by the company - plus 50 prototypes for test/development. The 4,000 cars per year figure is for the planned full range of cars not just the first model, and is less than Ferrari make. I`m guessing the £800M investment includes the factory as well as all the R&D, tooling and sales and marketing costs. I`m sure they`ll make this work especially with the expanding markets in the Far East.

[Adrian W]

BobE said:

Amazing attention to detail by the company -

It is interesting you picked up on that, I deal with several of the large car makers, they all have the same level of attention to detail, Bugatti have to be the leaders when it comes to cleanliness, what drives them all is cost and margin, just as it does Mclaren, interestingly they used to do stuff in the UK untill it went to China.

[daddysumo]

Next week on that program is the turn of the place I and Bondy work at !
I stayed well out of the way of the cameras I hope !!....

[Adrian W]

daddysumo said:

Next week on that program is the turn of the place I and Bondy work at !
I stayed well out of the way of the cameras I hope !!....

I saw that, and said to Josh " that's where Steve works"

[mgbond]

daddysumo said:

Next week on that program is the turn of the place I and Bondy work at !
I stayed well out of the way of the cameras I hope !!....

When they do the old fast forward time line stuff you might see me in the cleanroom (Which would be odd as I don't go in there much these days. lol). Although as we all dress up the same I will be hard to spot. lol

If I am in it then maybe we could have a game of spot the Bondy

[daddysumo]

mgbond said:

When they do the old fast forward time line stuff you might see me in the cleanroom (Which would be odd as I don't go in there much these days. lol). Although as we all dress up the same I will be hard to spot. lol

If I am in it then maybe we could have a game of spot the Bondy

They did a lot of filming in my cleanroom over a period of months. I kept well out of the way especially when they wanted volunteers to do some babbling.....

[andygtt]

daddysumo said:

mgbond said:

When they do the old fast forward time line stuff you might see me in the cleanroom (Which would be odd as I don't go in there much these days. lol). Although as we all dress up the same I will be hard to spot. lol

If I am in it then maybe we could have a game of spot the Bondy

They did a lot of filming in my cleanroom over a period of months. I kept well out of the way especially when they wanted volunteers to do some babbling.....

you missed your chance to become a famous celebrity lol

[Dr K]

joust said:

n simple maths, 4000 @ £100k gross profit is £400m. Looks a pretty canny investment to me as the £800m will also be a gross figure.

If they just do 10% net margins it's still a pretty cracking return.

J

I'd be surprised if there was £100k profit in each car.

[BobE]

Dr K said:

joust said:

n simple maths, 4000 @ £100k gross profit is £400m. Looks a pretty canny investment to me as the £800m will also be a gross figure.

If they just do 10% net margins it's still a pretty cracking return.

J

I'd be surprised if there was £100k profit in each car.

He said `gross` profit - so after taking off the sales value everything in direct costs - labour and material to build the car, warranty costs, factory running costs etc. Out of what`s left has to come the indirect costs: R&D, sales and marketing and amortisation of the investment in tooling etc. What`s left after that is the `net` profit which as you say will be way less than £100K but I still bet in the end it will all make sense. Ron wouldn`t be this if he wasn`t going to get a return and neither would his backers.

[Adrian W]

BobE said:

He said `gross` profit - so after taking off the sales value everything in direct costs - labour and material to build the car, warranty costs, factory running costs etc. Out of what`s left has to come the indirect costs: R&D, sales and marketing and amortisation of the investment in tooling etc. What`s left after that is the `net` profit which as you say will be way less than £100K but I still bet in the end it will all make sense. Ron wouldn`t be this if he wasn`t going to get a return and neither would his backers.

The difference between top and bottom line is whatever the accountants want it to be

[joust]

Adrian W said:

The difference between top and bottom line is whatever the accountants want it to be

Surely it's "however you interpret FRS"