The German V-weapons (V-1 and V-2) cost $3 billion (wartime dollars) and was more costly than the Manhattan Project that produced the atomic bomb ($1.9 billion).[13]:178 6,048 V-2s were built, at a cost of approximately 100,000 Reichsmarks (GB£2,370,000 (2011)) each; 3,225 were launched. SS General Hans Kammler, who as an engineer had constructed several concentration camps including Auschwitz, had a reputation for brutality and had originated the idea of using concentration camp prisoners as slave laborers in the rocket program. The V-2 is perhaps the only weapon system to have caused more deaths by its production than its deployment.[44]
"… those of us who were seriously engaged in the war were very grateful to Wernher von Braun. We knew that each V-2 cost as much to produce as a high-performance fighter airplane. We knew that German forces on the fighting fronts were in desperate need of airplanes, and that the V-2 rockets were doing us no military damage. From our point of view, the V-2 program was almost as good as if Hitler had adopted a policy of unilateral disarmament." (Freeman Dyson)[45]
The V-2 consumed a third of Germany's fuel alcohol production and major portions of other critical technologies:[46] to distil the fuel alcohol for one V-2 launch required 30 tonnes of potatoes at a time when food was becoming scarce.[47] Due to a lack of explosives, concrete was used and sometimes the warhead contained photographic propaganda of German citizens who had died in Allied bombing.[18]
The V-2 lacked a proximity fuse, so it could not be set for air burst; it buried itself in the target area before or just as the warhead detonated. This reduced its effectiveness. Furthermore, its early guidance systems were too primitive to hit specific targets and its costs were approximately equivalent to four-engined bombers, which were more accurate (though only in a relative sense), had longer ranges, carried many more warheads, and were reusable. Moreover, it diverted resources from other, more effective programs. Nevertheless, it had a considerable psychological effect because, unlike bombing planes or the V-1 Flying Bomb (which made a characteristic buzzing sound), the V-2 travelled faster than the speed of sound, with no warning before impact, no possibility of defence and there was no risk of attacking pilot and crew casualties.
With the war all but lost, regardless of the factory output of conventional weapons, the Nazis resorted to V-weapons as a tenuous last hope to influence the war militarily (hence Antwerp as V-2 target), as an extension of their desire to "punish" their foes and most importantly to give hope to their supporters with their miracle weapon.[18] The V-2 had no effect on the outcome of the war, but its value, despite its overall ineffectiveness, was in its novelty as a weapon which set the stage for the next 50 years of ballistic military rocketry, culminating with ICBMs during the Cold War and modern space exploration.