Pandemic Arrests New Bugatti Supercar Development
Bugatti is to put on hold plans to develop a second-tier hypercar to sit alongside the current Chiron due to the economic contraction caused by the Covid-19 pandemic. Conversely, ultra-net-worth clients who are able to afford a $3m Chiron have been unaffected by the economic shock caused by the pandemic. The super-wealthy have learned how to weather sudden economic downturns, such as the 1929 Wall Street Crash and the 2008 banking crisis.
These days, the super-wealthy are effectively protected by the state. In some cases taxpayers money is often used to bail out losses made by major corporations, and the wealthy elites, with the bill subsequently picked up by the taxpayer. But that is another article for another day. Indeed Bugatti has seen no decline in demand during the entirety of the pandemic.
However, Bugatti is hampered in other ways. Parent company Volkswagen, has seen a contraction in sales due to the pandemic. And when VW sufferers a loss there is simply less money to spread across its multi-brand conglomerate.
Rumors are also circulating that Volkswagen could sell Bugatti to Rimac, the maker of electric ultra sports cars. However, Porsche owns 15 percent of Rimac, and Volkswagen owns Porsche. So, even if the deal went through Bugatti would still be owned by Volkswagen, in one way or another.
Volkswagen is seeking re-direct budgets to build more electric cars and will wait until the end of November to clarify Bugattis’s future and budget allocation. It’s highly unlikely VW will sell Bugatti.