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How the VW Crisis Could Affect Bugatti

By now, everyone in the automotive world and all others know about the VW crisis dealing with the emissions scandal. While accusations and opinions will continue to fly for a while, an important issue will be the future of Bugatti. How will the Volkswagen emissions crisis affect the future of the beloved Bugatti brand?

VW crisis

The Bugatti brand actually costs money to stay alive, meaning that VW loses money on each unit sold. Even though the basic cost of a Bugatti Veyron is around a million and up, it has been revealed that VW loses around $3 million for each Veyron sold. Many find these figures difficult to grasp and assume that selling million-dollar-plus hypercars can only lead to profit. The reality is that development and materials often outweigh profits by a large margin, making the boutique brand reliant upon the other VW brands for its financial survival.

VW brands

Now that the VW brand is enduring so much scrutiny and likely an astronomical financial hit, what will become of Bugatti in the foreseeable future? Will this put a halt to the Bugatti Veyron successor’s development? It seems safe to assume that any expensive expenditure will be put on hold at this time, causing unfortunate delays to fans already waiting for the next big thing.

VW crisis As with most legal issues big automakers invariably encounter, this will likely be addressed and managed with impeccable speed and attention to detail, with lessons learned and a wiser future path mapped. VW is simply too large and good at its game to allow this to be a fatal hit, which leaves ample hope that the Bugatti brand will survive, just perhaps after a brief pit stop. VW is currently focused on righting the wrongs and working to earn back trust in the brand. Overall, while it certainly does not make the emissions errors ok, the media has done a splendid job of making it seem like they are the only brand guilty of such a thing. Carmakers have been trying to adhere to constantly changing environmental regulations while trying to remain profitable to shareholders, and at times taking the easy route can prove to be too tempting. With innovative new powertrains and the idea of a hybrid being more accepted in the market, these illegal issues should begin to diffuse on their own and the world should have its Bugatti Veyron successor in due time.

VW crisis

Post by Imagine Lifestyles Luxury Rentals

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