Photo: Bugatti
In its recent history, under the wings of Volkswagen, Bugatti managed to release only two stand-alone models in over 20 years, Veyron and Chiron.
Veyron, according to various sources, cost Bugatti and the VAG group an absolutely astronomical figure to produce due to increased research and development costs, as the car was a bit ahead of its time. In the end, it made it into production mainly due to the stubbornness of Ferdinand Piech, the head of Volkswagen at the time, whilst supposedly “losing money” for each unit sold.
Every way you look at it that does not sound like a healthy business model. Fast forward to today, with a mammoth global change on the way and an uprising trend to switch to more sustainable solutions, a sudden U-turn towards mass produced electric cars doesn’t sound that farfetched for Bugatti after all.
Going full electric, with the supposed development of a power unit and the creation of a more automated infrastructure fit for a new breed of vehicles, will require them to consolidate their powers and resources in a way not many did before. And it’s not going to be easy by any means.
The first challenge that Bugatti could face if they decide to move forward with this idea, is managing to prove that a car manufacturer that has relied completely on internal combustion engines for longer than a century, and manufactured cars that are more expensive than most of us make in a lifetime, can produce EV’s that people could afford and more importantly, want to purchase.
The good thing though is that they are not alone in this game. Being part of the VAG group means that they will benefit from the attitude VW has lately, shaping up their business model in order to adapt to a new world that looks keen on making a switch from ICE to EV.
Reports claimed that the management of Bugatti is trying to persuade VAG bosses to expand the French model lineup with a relatively affordable car, one with an electric power unit and four seats, somewhere at the junction between SUV’s and sports sedans.
Taking into consideration the market demand for crossovers, it does not sound like a bad idea at all. In addition, Porsche, which is also part of the VAG group, recently increased its stake in Croatian performance brand RIMAC, and that is a pretty decent way to gain access to the latest electric tech in the industry, a head start if you will. Performance wise, RIMAC is clearly up to the task and would be among the few ones that could offer Bugatti the power they need, that of course if things take that route and Bugatti doesn’t design their own power unit.
I previously said a relatively affordable car because we are still talking about Bugatti. If for the Chiron you need to come up with around $3 million, and for the La Voiture Noire with around $19 million, then a fairly cheap car in their world would sell for around $750,000 to $1 million, an unprecedented generosity by the standards of a modern era Bugatti.
Moreover, with the current way Bugatti conducts its business, where cars are manually assembled at the factory, they can only manage to produce around a hundred units every year. So there are massive “improvements” to be made and automatization processes to be figured out before they could raise the bar to around 600 cars a year, so they can properly call it mass produced.
That being said, the production plan for the Chiron is close to the final stages. They can still stretch it for a couple of years due to special versions of the Super Sport 300, but afterward the sky is the limit.
The good thing is, that the biggest challenge the French brand will have to face is the competition from other, smaller companies, especially newcomers like… well, there’s none, really. So Bugatti might just hit the jackpot with this one...
Every way you look at it that does not sound like a healthy business model. Fast forward to today, with a mammoth global change on the way and an uprising trend to switch to more sustainable solutions, a sudden U-turn towards mass produced electric cars doesn’t sound that farfetched for Bugatti after all.
Going full electric, with the supposed development of a power unit and the creation of a more automated infrastructure fit for a new breed of vehicles, will require them to consolidate their powers and resources in a way not many did before. And it’s not going to be easy by any means.
The first challenge that Bugatti could face if they decide to move forward with this idea, is managing to prove that a car manufacturer that has relied completely on internal combustion engines for longer than a century, and manufactured cars that are more expensive than most of us make in a lifetime, can produce EV’s that people could afford and more importantly, want to purchase.
The good thing though is that they are not alone in this game. Being part of the VAG group means that they will benefit from the attitude VW has lately, shaping up their business model in order to adapt to a new world that looks keen on making a switch from ICE to EV.
Reports claimed that the management of Bugatti is trying to persuade VAG bosses to expand the French model lineup with a relatively affordable car, one with an electric power unit and four seats, somewhere at the junction between SUV’s and sports sedans.
Taking into consideration the market demand for crossovers, it does not sound like a bad idea at all. In addition, Porsche, which is also part of the VAG group, recently increased its stake in Croatian performance brand RIMAC, and that is a pretty decent way to gain access to the latest electric tech in the industry, a head start if you will. Performance wise, RIMAC is clearly up to the task and would be among the few ones that could offer Bugatti the power they need, that of course if things take that route and Bugatti doesn’t design their own power unit.
I previously said a relatively affordable car because we are still talking about Bugatti. If for the Chiron you need to come up with around $3 million, and for the La Voiture Noire with around $19 million, then a fairly cheap car in their world would sell for around $750,000 to $1 million, an unprecedented generosity by the standards of a modern era Bugatti.
Moreover, with the current way Bugatti conducts its business, where cars are manually assembled at the factory, they can only manage to produce around a hundred units every year. So there are massive “improvements” to be made and automatization processes to be figured out before they could raise the bar to around 600 cars a year, so they can properly call it mass produced.
That being said, the production plan for the Chiron is close to the final stages. They can still stretch it for a couple of years due to special versions of the Super Sport 300, but afterward the sky is the limit.
The good thing is, that the biggest challenge the French brand will have to face is the competition from other, smaller companies, especially newcomers like… well, there’s none, really. So Bugatti might just hit the jackpot with this one...
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