Volkswagen is trying to figure out what to do with Bugatti, Lamborghini and Ducati, and options are said to include everything from a sale to a restructuring.
While a decision isn’t expected until next month, it appears the strategic review is already having an impact on future models.
Speaking to Bloomberg, Bugatti President Stephan Winkelmann said the brand has had “talks about a second model” but that has now been “blocked due to the coronavirus crisis.” He went on to say the company is no longer talking about what’s coming next.
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While Winkelmann put the blame on the pandemic, it’s part of a larger issue facing the Volkswagen Group. The resulting economic downturn has put pressure on companies to cut costs at the same time they’re facing the need to invest billions into the development of electric vehicles.
Electric vehicle development is easy to justify for brands such as Audi and Volkswagen, but harder for niche automakers which only sell a handful of units annually. Of course, if they don’t go electric, they could potentially be banned from key markets such as California which is halting the sale of new ICE vehicles by 2035.
Despite these pressures, Winkelmann said Bugatti is on track to post record revenues this year and has a robust sales book that is already 70-80% full for 2021. Given that, the company’s immediate future looks bright but there are clouds on the horizon.
A decision on Bugatti’s future is expected in November, but reports have suggested Volkswagen is planning to sell the brand to Rimac. Winkelmann declined to comment on those rumors but, if the brand is set to be taken over by Rimac, halting development wouldn’t be a bad idea as the Croatian company would undoubtedly be eyeing an electric makeover for Bugatti.
