Bugatti halts plan for new Chiron supercar due to Covid-19 crisis

The virus-induced market downturn has made it harder for supercar makers to justify shelling out development costs for vehicles that can travel north
...
A Bugatti Chiron sports car being driven on a road in France. (File photo) (REUTERS)
A Bugatti Chiron sports car being driven on a road in France. (File photo)

Bugatti Automobiles SAS has put on hold plans for a second model to flank the Chiron supercar ahead of parent Volkswagen AG’s annual investment review next month.

The decision was prompted by the damage inflicted on the car industry by the Covid-19 pandemic, Bugatti chief Stephan Winkelmann said in a Bloomberg TV interview. Despite the outbreak, the carmaker expects to generate record revenue this year, Winkelmann said.

Also check these Cars

Find more Cars
Volkswagen Polo 2024 (HT Auto photo)
UPCOMING
Engine Icon999 cc FuelType IconPetrol
₹ 8 Lakhs
Alert Me When Launched
Volkswagen Tiguan 2025 (HT Auto photo)
UPCOMING
Engine Icon1984 cc FuelType IconPetrol
₹ 37 Lakhs
Alert Me When Launched
Volkswagen Taigun (HT Auto photo)
Engine Icon1498.0 cc FuelType IconPetrol
₹ 10.49 Lakhs
Compare
View Offers
Volkswagen Virtus (HT Auto photo)
Engine Icon999.0 cc FuelType IconPetrol
₹ 11.21 Lakh
Compare
View Offers
Volkswagen Tiguan (HT Auto photo)
Engine Icon1984.0 cc FuelType IconPetrol
₹ 32.79 Lakhs
Compare
View Offers
Volkswagen Id.7 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77 kWh Range Icon621 Km
₹ 70 Lakhs
Alert Me When Launched

“We had talks about a second-model lineup," Winkelmann said. “This was now blocked due to the coronavirus crisis; we’re not talking about what’s coming next."

Well-heeled supercar buyers are less exposed to the economic impact of the coronavirus crisis, but niche manufacturers built around hulking combustion engines like Bugatti or Italian peer Pagani Automobili SpA face increasing scrutiny due to tightening emission regulations in key markets. At the same time, the virus-induced market downturn has made it harder to justify shelling out development costs for cars that can travel north of 300 miles per hour.

The year 2020 “may be the best year ever" for the Molsheim, France-based boutique manufacturer even as the virus crisis held back growth, Winkelmann said. The robust order book through next year “gives us peace of mind," he said at the presentation of a new Chiron version dubbed Pur Sport that sells for a net price of 3 million euros ($3.5 million).

All cars to be produced this year and between 70% and 80% of planned output in 2021 have already been sold, according to Winkelmann.

Bugatti’s future is clouded by a possible change of ownership. Volkswagen is considering selling the company to Rimac Automobili, people familiar with the matter said last month. VW’s Porsche unit holds a 15.5% stake in the Croatian electric-supercar startup.

Winkelmann declined to comment on the report.

VW, the world’s bestselling automaker, will review spending plans at the end of November. Pressure on budgets is set to surge after the Covid-19 outbreak shattered the industry and dampened economic growth worldwide. Under the current five-year budget, Volkswagen has earmarked 33 billion euros through 2024 for electric vehicles to build the industry’s largest fleet of purely battery-powered cars.

Check out Upcoming Cars in India 2024, Best SUVs in India.

First Published Date: 06 Oct 2020, 16:22 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.