It goes without saying that cash flow plays a huge role for an automaker. This is because the amount of money needs to be a substantial amount to get a car manufactured. Because of that, it is crucial to have a vehicle that will produce sales so that a profit can be obtained. However, sometimes bad judgment can be made, which can break a car manufacturer and cause bankruptcy. Below are 10 examples of when a car bankrupted the manufacturer.
The Wiesmann MF5
The Wiesmann company had been producing vehicles for more than 15 years by the time the MF5 came along. However, the bad part is that each vehicle produced had the exact same design as other models in their lineup. It was for this reason that in 201, the manufacturer filed for bankruptcy.
The Weber Faster One
As a Swiss manufacturer, Weber began producing vehicles in 2008. Although the carmaker made claims that the Faster One was doing well, there was nothing to back it up.
Plus, with a claim as being the most expensive, which was true, it was evident that the price was not worth paying, and thus Weber went under quickly.
The Joss JP1
When you have the right ingredients to make a car, everything seems to mix well. This is what the Australian manufacturer was hoping for, but the sales did not happen. In fact, Joss decided to conduct a 2014 crowdfund to try to keep the company afloat but failed. Ultimately, Joss busted and closed its doors shortly after the crowdfunding attempt.
The FBS Census
When you produce a sports car, it needs to look good so that a customer can be attracted to it. However, the Census did the opposite for the manufacturer. If that was not bad enough when a buyer attempted to sell their Census, they ultimately lost a huge amount of money, and with knowing that the resale value would be terrible, nobody will be willing to buy one at all. With very few purchases, it was not enough to keep them operating, and thus became bankrupt in just a couple of months.
The Peranza Z-One
Based in South Africa, Peranza has been in car manufacturing for years but never dove into sports cars until the Z-One came along. With a plan to be less than $100,000, the plan fell through, and just in a few years, Peranza filed for bankruptcy.
The Jensen SV-8
No one would think that a famous automaker would have financial troubles, but unfortunately, that is what Jensen went through in 1976. Fast forward to the 90s, and Jensen decided to give it another shot with their SV-8.
At a 1998 Motor Show, the SV-8 made a nice impact among buyers, and it was believed that at least 300 SV-8s were ordered. However, within a year, those orders became less and less, and less than half had remained. To make problems worse, rivals began offering less expensive models that looked a lot prettier than the SV-8. Soon, the amount of orders vanished, and a 2002 bankruptcy was initiated.
The Marussia B1
With the B1 from Marussia, it actually had a nice existence but for only a short time once it got started in 2007. The manufacturer was certain that their B1 would be produced on a massive scale, followed by its B2.
During their car manufacturing years, Marussia managed to create a team for Formula 1 and planned for expansion in Monaco and London. Unfortunately, this became more of a financial burden, and they ended up losing more than they made in sales. This led to a 2014 bankruptcy.,
The Spyker C8 Preliator
Spyker decided to take a stab at sports cars in Holland and has managed to fail at every attempt resulting in a bankruptcy. In fact, it seems like every car they attempt to produce ends up being a reason for going under. However, when they decided to develop their C Preliator, it had caused Spyker to fold permanently in 2021 when there were no reported sales or even orders for the car.
The Vector M12
Made in America is not always to be taken lightly, and the Vector company knows it. This is probably why they never made a car before the M12, and in fact, the company had only produced prototypes but never followed through with their production. With a huge amount of restraints on the budget, the vehicle eventually became a Lamborghini Diablo look-alike. This did not interest buyers, and this ultimately caused Vector to file for bankruptcy shortly after introducing the M12.
The Gumpert Apollo
The Apollo from Gumbert did not look great when it made a 2005 appearance on the market. Unfortunately, though, Gumbert was not able to pull through and finish what they started as the 2008 recession began and a need for their Apollo quickly disappeared. With no more interest, a 2013 bankruptcy was filed.
Conclusion
It goes without saying that a bankruptcy can have devastating effects on a business. This is why you should contact us today to see what can be done for your situation.