Report – Bugatti Veyron successor gets the green light image

Volkswagen AG, as it’s nearing the completion of the promised 450 unit small series for the Bugatti model, has decided to make sure this year is not the last you could give them almost 1.5 million euros for a car.

The limited run of 450 Veyrons has almost reached its natural life course, with fewer than 20 units available for sale, with prices starting at the whopping 1.46 million euros ($1.85 million). While the second biggest automaker in the world and Europe’s largest is mulling cost cuts at each business unit, apparently the loss-making Bugatti division has escaped unharmed.

According to Bloomberg, two sources that have knowledge of the plans said that the Wolfsburg, Germany-based carmaker has prototypes for at least three different concepts. While VW AG is mulling huge cost cuts at its more “mundane” brands, Bugatti goes about its business – the brand has set industry records for both speed and money loss.

“I have long struggled to understand the logic of expending this much time and effort on a Bugatti-branded product,” says Max Warburton, a Singapore-based analyst for Sanford Bernstein. “I totally get the point of building the world’s fastest car — it pushes the engineering boundaries, motivates the company and can be an image booster. But the image-boosting part is lost when it carries a brand that 95 % of people don’t know is part of VW.”

According to Warburton, the associated development costs are allegedly causing a 4.6 million-euro loss per vehicle across the life cycle. According to the sources, the successor should be lighter and have an engine 25% more powerful than the top of the range 1,200-horsepower version.

Via Bloomberg