The Truth About Cars » Pagani The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Fri, 25 Jul 2014 10:00:11 +0000 en-US hourly 1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Pagani Pagani Huayra Airbag Waiver Denied: No US Sales Until 2015? Fri, 05 Aug 2011 18:18:39 +0000

NHTSA has denied the niche supercar maker Pagani a waiver for advanced airbag requirements for its new Huayra, possibly forcing the Italian firm to delay US sales until 2015. According to the Federal Register[PDF], Pagani

estimated that if the requested exemption were granted, it would sell 35 to 45 vehicles per year, 6 to 12 vehicles of which would be sold in the United States…. [Pagani] submitted projections estimating that if the petition for exemption is denied and no vehicles are sold in the United States, the company would make an estimated €5,398,000 in net income during the period of 2011 through 2014, compared to €8,613,000 in net income during the same period if an exemption were granted.   The company asserted that the difference in gross revenue between granting and denying the exemption is approximately €34,000,000, and the financial records indicate a difference in projected net income of approximately €3,215,000.

Although Pagani has realized profits in recent years, the company asserted that immediate compliance with the advanced air bag requirements will cause substantial economic hardship.  Specifically, Pagani stated that the company only operates on the cash on hand without lines of credit or debt financing, and its small profit margin is necessary to guard it from market fluctuations. Pagani stated that without an exemption, it will not be able to fund the advanced air bag program, which is estimated as costing €4,000,000, from its non-U.S. sales and will not be able to enter the U.S. market until at least 2015.

Finally, Pagani stated that its production capacity is currently limited to approximately 25 units per year worldwide.  The company indicated that its plan is to expand its production capacity to 50 to 60 units per year worldwide by building a new factory.  However, the company stated that the new factory represents a significant investment for the company and could not be justified without the revenue from U.S. sales.  Accordingly, construction of this new facility cannot begin unless an exemption is granted.

So let’s see: the company hopes to build 60 units per year, stands to lose nearly $50m in gross revenue and nearly half it’s net profit if the request is denied, and will lose access to a huge market for four years… why doesn’t the government count this as a “hardship”? Is NHTSA really that concerned about protecting the handful of  bajillionaires who will be buying the $1.4m Huayra and likely keeping them at a track anyway? The problem: it turns out that Tesla, which enjoyed a waiver for years while receiving tens of millions in taxpayer-backed loans, has ruined the waiver for everyone. According to NHTSA’s post-Tesla change of heart:

low volume manufacturers now have access to advanced air bag technology. Accordingly, NHTSA tentatively concludes that the expense of advanced air bag technology is not now sufficient, in and of itself, to justify the grant of a petition for a hardship exemption from the advanced air bag requirements

Oh well, nobody’s going to miss one of the coolest, most exclusive, most jaw-dropping cars in the world for a few years, while Pagani installs advanced airbags. American bajillionaires just love to be last in line for the new hotness…

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Pagani Goes Downmarket, McLaren Goes Upmarket Wed, 07 Jul 2010 14:53:56 +0000

Italian supercar upstarts Pagani started with one car, the Zonda, and have maintained a laser-like focus on that single nameplate ever since. Former supercar heavyweight McLaren is re-entering the road car arena with its V8-powered Ferrari Italia-fighter, the MP4-12C, but is fast-tracking the development of its range-topping supercar, pitched as a neo-McLaren F1 and aimed at the Zonda and its hypercar ilk. Recession? What Recession?

The new McLaren, provisionally named the F1 by Autocar, will follow its inspiration’s emphasis on low weight and will be built around a carbon monocoque similar to the MP4-12C’s. The new McLaren should fit in above the MP4-12C’s $250k base price, possibly costing as much as the €500k that the new Pagani C9 is expected to cost. But that Zonda replacement will also be accompanied by a smaller, V8-powered Zonda, presumably powered by Mercedes’ 6.3 liter V8. This “baby” Pagani joins the MP4-12C in making the Ferrari 458 Italia’s job a lot harder, jamming the quarter-million-dollar supercar field with more options. What’s a newly wealthy showoff to choose?

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One Million Euro Prototype Smashed To Bits Sat, 03 Apr 2010 10:47:29 +0000

That was expensive: Close to the Daimler proving grounds near Stuttgart, the local fire department could pick the remainder of a prototype Pagani C9 über-sportscar out of the guardrail. Cost: €1m, give or take a few.

The test driver had lost control over the car and stuffed it. According to auto motor und sport, „the close vicinity to Mercedes surely is no accident.“ The Pagani C9 is (was) propelled by a 6 Liter 700hp 12 cylinder by AMG, which can also be found in the Mercedes SL 65 AMG Black Series. Il nuovo Pagani is supposed to be shown at the Paris Autoshow. If they find a new one. This one is beyond repair. The driver escaped with minor scratches.

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