One of the biggest thrillers being written in the car industry right now is what Volkswagen is doing to recover from its cheating diesel scandal. Estimates of the cost to VW Group vary widely, but most agree that $10 billion is probably on the low end. That's a lot of cash, even for one of the world's largest auto manufacturers, and questions abound over which projects, new cars, or even brands might find themselves in for the corporate axe. The latest plot twist will take many by surprise: VW-owned Bugatti will indeed build a replacement for the Veyron.
In October we learned that the new Phaeton—a technological flagship sedan that no one bought—would survive as an electric vehicle. R&D spending would be cut, too; VW was spending around $12.6 billion a year on research, more than any of its competitors. The Bugatti Chiron was thought to be a goner for sure. VW Group is thought to have lost almost $5 million on every Veyron it sold, and continuing to build ornate rocketships for plutocrats could seem at odds with a sober corporate rehabilitation strategy. But more than 100 orders were already on the books, and the car will debut in 2016, the company announced today.
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