Graham Wood
E.O.C. Chairman
Webmaster
User name = RAM
Posts: 516
Location, Town please: Southport, U.K.
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Post by Graham Wood on Jul 1, 2022 18:55:44 GMT
Westfield Sports Cars enters administration
Why are they failing ?
1 )
Westfield Sportscars Ltd said "is proud to announce the purchase of the Chesil Motor Company, manufacturer of the world-renowned Chesil ( porsche ) Speedster." ( 2019 ) but any profit on all car ranges will take 5 to 10 years to repay the cash ( from sales profits ) that came out of the bank, or to pay off the loan to buy the company ( plus loan interest charges )
Second hand Factory Built Chesil – Polar Silver £43,999.. year 2017 - 5000 miles, 1800 beetle engine . 1974 shortened beetle chassis. Far too expensive.
edited, 6 July 2020
2)
A Westfield sports car complete kit for home build just £23,703, again - expensive.
3)
Westfield developes self driving blob, - used at Heathrow airport to ferry pasengers This too is a massive investment, robbing West field of much needed capital.
4) Selling electric Westfields and Chesil cars ( again - much expence in developing )
5) and they wonder why they have no money, and have to close.
A kit car company CANNOT spend money to buy another company / develop Westfield and Chesil electic cars, nor to develope a self driving blob. It takes money from profits, and all that money went into 1) and 3).
Simple mathmatics. They don't have a mass volume market for mass sales,( thereby producing revenue to diversify ) unlike Ford / Vauxhall
The Directors caused this problem. So don't blame low sales, Even with low sales of Westfields std car sales, they would not have had the burden of the draining of money into 1,3 & 4.
There may be other reasons that ALSO contributed to their closure, but above is just a money drainer: They took on too much.
R.a.M.
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Graham Wood
E.O.C. Chairman
Webmaster
User name = RAM
Posts: 516
Location, Town please: Southport, U.K.
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Post by Graham Wood on Jul 5, 2022 21:31:21 GMT
In October 2019, Ford focus sold in just one month, 12,704 cars ( all europe )
Westfield cars sold in 39 years, 13000. cars / kits.
BIG difference.
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Post by chrisbailey on Jul 6, 2022 15:22:27 GMT
With electric cars taking over in the near future,I dont see many kit manufacturers surviving.
I doubt there is a market for electric kit cars. Atleast until the cost of batteries and motors comes down drastically .
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Post by austin20 on Jul 7, 2022 15:25:17 GMT
Not all kit car manufacturers are going bust. A car firm local to me in Hampshire has just taken on the rights to build new marcos cars. Mini and sports versions are evident in the works. Keep your eyes open new ones might be driven through a town near you!
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Graham Wood
E.O.C. Chairman
Webmaster
User name = RAM
Posts: 516
Location, Town please: Southport, U.K.
|
Post by Graham Wood on Jul 7, 2022 17:55:56 GMT
Not all kit car manufacturers are going bust. new marcos cars. Good to see it back in production, but I give it 10 years.
Going broke - history of Marcos ( Very briefly )
They have gone bust 4 times already
Marcos ceased production and went into receivership in 1972
But were manufacturing again in 1985
In 2000 Marcos Sales Ltd was put into administration and the assets of the company were acquired by Marcos Heritage.
In 2002 Californian Tony Stelliga bought the Mantaray II project and developed the range of TS cars under the company, Marcos Engineering Ltd.
2007 Marcos Engineering Limited went into liquidation. Marcos cars were no longer produced.
R.a.M.
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