A Big Business.

Reading through a news section on the Autocar today I stumbled across something interesting, to me at least.

I am one of those people that has absolutely no clue as to how much money actually goes into creating a car or any of its components. So when I came across the news of how much money Jaguar has just invested into creating its new base four cylinder engine I was a tad shocked.

£335 million. Now that's a lot considering it's just the engine we're talking about. Imagine how much it would cost to do the whole car! I'm thinking somewhere in the billion regions. Now you might be wondering just why is he telling us his pathetic musings on the finances of the motoring industry?

It's simple. Just how the hell do any of them stay in business? In order for Jaguar to actually make a profit or break even they would have to sell around 1,000 XFs. I have a feeling my maths are a bit out but it makes the point. Of course that's just to break even on the engine, not the whole car. Then you consider just how many cars they produce and develop in a year and then it hits you that they must be constantly going out of business.

What's your take on this? I'd love to hear it but for now thankyou all for reading this blog and please do come back again tomorrow.