VW could shed or shakeup Lamborghini, Bugatti

[blue8]

From Leftlane News
Report: VW could shed or shakeup Lamborghini, Bugatti

Some individuals in the automotive world are interpreting recent comments by a top Volkswagen board member as an indication the company might spin-off or sell its Lamborghini and Bugatti brands. In an interview with industry trade publication Automotive News, Porsche AG CEO Wendelin Wiedeking made his feelings on the fate of the two exotics brands clear — "no toys anymore," he said.

Wiedeking is a member of VW's supervisory board, and Porsche is soon to expand its stake in the company to 29.9 percent. Increase its investment any higher, and Porsche would have to make a formal bid to take over VW, according to German law.

Mr. Wiedeking was recently reported to be putting pressure on VW to make major changes at Bugatti, which is currently unprofitable. Considering Lamborghini's relative success, it's unclear what sort of changes could be made at the company to satisfy Wiedeking. One distinct possibility would be the sale of both brands, providing more room for Audi and Bentley to breath. Wiedeking made it clear, however, he did not want Porsche and VW to merge. "We want to keep Porsche completely independent of all VW brands" says Wiedeking. Of course, Porsche and VW will continue to share parts and technology behind the scenes.

-- good to hear that Porsche wants to be independent of VW and yet there's the Cayenne... at least it sells. If this is official, then it's highly unlikely to pursue plans of producing a 1200hp Veyron. I'm worried more for Lamborghini but then again, breaking off from VW might eliminate plans for an SUV

[vexor]

bit more addon to that story

It looks like the original report by Auto News didn’t have the full explanation of Wendelin Wiedeking’s quotes. When referring to “no toys anymore” he was actually talking about cars such as the VW Phaeton. Since Bentley and Lamborghini are already making a profit there are no plans to shut them down. Still no word on Bugatti, though. VW is unlikely to ever recoup development costs for the million dollar Veyron hypercar.

- MotorAuthority.com

[yg60m]

I respect Wiedeking for what he does with Porsche but I don't like what he's planing for these brands

[RC45]

Originally Posted by everso oh..and contrary to popular belief, Bugatti didn't lose THAT much money on the Veyron. What Clarkson said about the Veyron wasn't true....that it costed 4 million to make one....i've found out that is VERY wrong.

My source says JC is about right... and that within 12 months the proof will be in accounting disclosures for everyone to read.

[Mattk]

Businesspeople generally do not like to sell stuff for a loss. I can't see Bugatti being kept alive in the long run if it continues to be unprofitable.

[espen]

Consider that the first Audi A8 and the Phaeton were both sold at a loss. The A8 was however still a good business case because Porche did most of the development and VAG performed a huge jump forward both in aluminum technology and large engine technology.

The Veyron is probably much the same case. VW will offset the cost into marketing and technology transfer. I'd like to see which sportscar brand has made more of a jump in brand value lately... from bankrupt makers of the wonderful EB110 to the worlds premier hypercar maker in a single model.

[deuces]

all of the companies will no doubt retain benefits from the research that went in to making the veyron, despite it selling at for a loss. it seems that it was more for publicity to get the brand recognized again than anything else. i agree that bugatti should just make special extremely limited run models.