Bugatti’s future uncertain

VW’s brand may be cut
Matthias Müller, the new CEO of Volkswagen AG: “We will review all planned investments, and what isn’t absolutely vital will be cancelled or delayed"
Graham Scott19 October 2015

The potential damage from the Volkswagen emission scandal continues to widen. Matthias Müller, the new CEO of Volkswagen AG, has told workers that costs and development could both be cut.

This would most likely apply less to the core Volkswagen brand but more to the subsidiary brands it owns. It is thought that development for the successor to the Bugatti Veyron could well be stopped or seriously delayed.

Speaking to workers at the Wolfsburg headquarters, Müller spelled out the damage from the emissions scandal. “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.

"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."

This is seen as a signal that the core may be protected but that the Bugatti brand may well be sidelined. So far VW has set aside 6.5bn euros (£4.7bn) but experts think the total could well be treble that, taking into account all the class actions that are being brought.

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