Bye bye Bugatti? VW emissions scandal forces cash away from non-core projects

International Business Times

 

By Alistair Charlton October 7, 2015

 

 

 

 

As the Volkswagen emissions scandal continues to rumble on, it could be set to claim another scalp: Bugatti. Braced to pay almost £5bn towards recalling and fixing millions of cars − and much more in fines and compensation − VW is planning to halt investment in non-core projects, including the iconic supercar brand.

 

These include a next-generation VW Phaeton, the brand's luxury saloon car, and a replacement for the Bugatti Veyron, which was expected to draw inspiration from the Vision Gran Turismo, shown off just days before the emissions crisis broke. New VW boss Matthias Muller told German media on 6 October that any projects that aren't "absolutely vital" will be cancelled.

 

Addressing workers at VW's headquarters in Wolfsburg, Muller said: "We will review all planned investments, and what isn't absolutely vital will be cancelled or delayed. I will be completely clear − this won't be painless."

 

 

A crisis about a loss of confidence in VW

The former head of Porsche went on: "In addition to the huge financial loss, this crisis is primarily a crisis about a loss of confidence. It affects the core of our company and our identity, our cars, and the essence of the brand: solidity, reliability and credibility."

 

It is understood that investment in mainstream VW models, like the Golf and Polo, will continue, but Autocar believes development of non-core vehicles, like the Phaeton and new Veyron replacement could be halted. Given Bugatti is a single-car company and the fact that the Veyron is no longer in production and the four-seater Galibier never made it to production there are doubts as to whether the brand will survive at all.

 

VW could put Bugatti up for sale, but any potential buyer − or VW, if it keeps it for when the scandal headache subsides − would be urged to proceed with caution. Bugatti was reported by The Economist to have lost an average of £3m on every one of the 450 Veyrons it sold. Clearly, no such project would get the green light in VW's current position of financial turmoil.

 

Muller said VW engineers are close to working out a solution to the defeat device installed in cars fitted with the EA189 diesel engine. The device could tell when the car's emissions were being tested and altered how the engine worked to produce lower emissions. On the open road some VWs were found to produce up to 40 times more nitrogen oxide (NOx) than is legal in the US.

 

VW says some cars will only require a software update, whereas others will need hardware modifications. The first recalls will take place in January and are due to be completed by the end of 2016. VW has set up a website to help owners find out if their car is affected and how to get it fixed.

 

 

 

I wonder who would buy Lambo if it went on sale. Maybe BMW?

I wonder who would buy Lambo if it went on sale. Maybe BMW?

 

Please NO!

All speculation but very possible. I also think F1 in 2018 is going to be mothballed, maybe sell off Lambo and Bentley .

I wonder who would buy Lambo if it went on sale. Maybe BMW?

 

No. Can't comprehended that thought. BMW and Lambo do not go together.

 

I certainly hope VW will not sell off Bugatti or Lambo... But at this point it is not unrealistic.

Time to start cranking out more special editions to pay off those fine.

I called this in the original VW thread on this topic.

 

They're going to a "Ford". Not good non core product.

 

http://www.lambopower.com/forum/index.php?...=76976&st=0

 

 

post Sep 23 2015, 08:47 AM

Post #20

 

VW CEO out.

 

I think they are in real trouble. This isn't a poorly designed part recall. This is an active system deliberately designed and installed to defeat the emissions test. I would be surprised if there were not criminal charges brought. Obviously there will be multiple class action lawsuits for loss in value, pollution, buy back my car, shareholder suits for loss in stock value, the list goes on and on. Personally I don't think the $7b they are setting aside is enough.

 

It will interesting to see what this does to their product planning and future development. Will they keep loss leaders like Bugatti or small profit centers like Lamborghini around or will they do a Ford and flush all non core brands down the toilet.

 

 

--------------------

If they scrape Bugatti, i would imagine Bugs go up in price if a successor never comes.

Proton will add Lamborghini to Lotus!

God damn green weenies.

Please NO!

Why? Although I think an awesome scenerio would be a Lambo Pagani merger....but that will never happen lol, though I wish they would one day do a joint project together.

On the open road some VWs were found to produce up to 40 times more nitrogen oxide (NOx) than is legal in the US.

 

so THAT'S what caused global warming.

 

 

Why? Although I think an awesome scenerio would be a Lambo Pagani merger....but that will never happen lol, though I wish they would one day do a joint project together.

 

Because they haven't made a proper car since the 80's

Please NO!

 

Why is this a bad idea? IMHO, some of the more recent BMW designs are ahead of the industry.

I personally don't like BMW's direction right now, other than the i8. And I have a BMW.

I personally don't like BMW's direction right now, other than the i8. And I have a BMW.

 

They've lost their way. They're only concerned with money at the moment when they used to be concerned about true driver's cars.

Why? Although I think an awesome scenerio would be a Lambo Pagani merger....but that will never happen lol, though I wish they would one day do a joint project together.

 

Horatio used to work for Lamborghini. He left for a reason. His cars are light-years ahead of Lamborghini (for so many different reasons and tastes).

 

Lamborghini used to be the poster on the wall of the kids in the 80's and 90's. Now it's Pagani, and for good reason. Lamborghini still makes some cool stuff, but the torch for "icon" and "ultimate" has been passed to the bespoke manufacturers.

Horatio used to work for Lamborghini. He left for a reason. His cars are light-years ahead of Lamborghini (for so many different reasons and tastes).

 

Lamborghini used to be the poster on the wall of the kids in the 80's and 90's. Now it's Pagani, and for good reason. Lamborghini still makes some cool stuff, but the torch for "icon" and "ultimate" has been passed to the bespoke manufacturers.

 

Come on man, this is a Lambo forum. You can't say that!

 

Of course having just been at both factories I would be willing to back you up.

Come on man, this is a Lambo forum. You can't say that!

 

Of course having just been at both factories I would be willing to back you up.

 

just because this is a Lambo forum doesn't mean we shouldn't be realistic.

Lamborghini still makes some wonderful machines, but the one-off bespoke cars coming from Pagani and Koenigsegg are the stuff dreams are made of.

 

Please NO!

WHY Fortis? Would be better company than inherently fwd/4wd klonkswagen.

Why is this a bad idea? IMHO, some of the more recent BMW designs are ahead of the industry.

 

I honestly believe their build quality is terrible, I dislike their new designs and on the tech side they are behind the other major Euro brands, this coming from a HUGE BMW fan, unfortunately my love affair with the brand ended with their late 80's models, nowadays they aren't building anything worth talking about.

 

It would not want Lambo in their hands, I'd rather see it go to Benz.

just because this is a Lambo forum doesn't mean we shouldn't be realistic.

Lamborghini still makes some wonderful machines, but the one-off bespoke cars coming from Pagani and Koenigsegg are the stuff dreams are made of.

 

Of course that would be the case, give Lambo the same cards to play and then we could compare, for the money Lambo is still king when it comes to a total package exotic.

 

Apples with oranges, different price points, different regs to comply with, Pagani doesn't have to answer to Gods above, etc. etc.

 

As good as they look and are I wouldn't want a multimillion dollar car without a proper dealer network and support, small boutique manufacturers will always suffer from that and if they go main stream you know the rest of the story.

 

WHY Fortis? Would be better company than inherently fwd/4wd klonkswagen.

 

I've posted above why and subliminally you are agreeing with me by owing a cool 80/90s BMW

BMW has made some great motors in some terrible cars lately. It would be an amazing merger though.

I hate to see this. I am a/ VW/Audi Fanboy. I hope this doesnt affect the Audi brand that I love so much. Also the brands that we in this forum love so much.