Meet the 10 loss making cars that cost billions to their makers
Brokerage firm Sanford C. Bernstein has revealed a list of top 10 money losers in the auto world across Europe. This list features 10 cars, which are, Smart ForTwo, Fiat Stilio, Volkswagen Phaeton, Mercedes Benz A Class, Bugatti Veyron, Jaguar X Type, Renault Laguna, Audi A2, and Renault Vel Satis.
Reasons for this were due to the initial investment pumped into the project besides the cost of an exclusive plant and new platform and three cylinder engines, all of which went into the making of Smart ForTwo. The model did not live upto expectations and sales were down by 40% as per initial targets set. This resulted in the company losing a total of €4,470 ($6,032) on each ForTwo which rolled out from company plant.
Other models which led to losses were the Fiat Stilo which brought in losses to the tune of€2.10 billion ($2.83 billion), or €2,730 ($3,685) per vehicle produced while the VW Phaeton produced between 2001 and 2012 also led to losses for the company with a total loss of €1.99 billion ($2.68 billion). Peugeot 1007, Mercedes Benz A Class, Bugatti Veyron, Jaguar X Type, third generation Renault Laguna, Audi A2 and Renault Vel Satis also brought in a fair share of losses for their respective companies. Watch the infographic above for more information. (Source: The Economist)