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That Porsche owns a significant stake in the Volkswagen group (and all its subsidiaries) is no secret. In fact, Porsche is even in the process of increasing its stake. Oddly, though, little seemed to be done to minimize the competition presented to Porsche products by those of VW divisions: Lamborghini Gallardo vs. Porsche 911 Turbo, Audi TT vs. Porsche Boxster and Cayman, Audi Q7 vs. Porsche Cayenne, etc. But now Porsche is reportedly taking aim at an easy target: Bugatti.

Truth be told, it's really Bugatti's lack of profitability that Porsche is targeting. Porsche remains one of the only sportscar manufacturers that generates profit (copious amounts of it, actually), while Bugatti loses VW money continuously. The development costs of the super-expensive Veyron were to be offset by the application of technology towards future Bugatti vehicles (like a new saloon or four-door coupe), but if Porsche gets its way, a new Bugatti will never see the light of day, with Stuttgart evidently preferring to cut their loses (and a competing supercar maker).

Volkswagen would be unlikely to find a buyer for Bugatti even if Porsche applied enough pressure for them to sell. Stuttgart's proposal, then, would be to turn the exclusive marque even more exclusive, as a coachbuilder, creating unique one-off vehicles (like Jim Glickenhaus' Ferrari P4/5 by Pininfarina) for over $4 million a piece. And here we thought the existing Veyron was expensive....

[Source: Car magazine via Motor Authority]



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    • 1 Second Ago
  • 15 Comments
      • 8 Years Ago
      Bugatti loses over three million dollars on every car they sell.

      Maybe Ford will buy it.
      • 8 Years Ago
      #8 Carlos: I can't buy a Porsche (unless I'm stupid) so I rather have Porsche finished? What kind of logic is that?

      We all need these ultimate pieces of art, even if we cannot afford them: they stir our imagination, and broadens our horizons.

      I can't afford a Picasso, but he made me look differently at things...

      Better still: I never went to the moon, so I don't care for NASA. But I use many techonologies created by NASA everyday... Maybe even right now, sending this comment.
      • 8 Years Ago
      Send Bugatti racing, problem solved.
      • 8 Years Ago
      Somewhat ironically, Porsche WOULDN'T be profitable today if they hadn't called the Japanese in for some cost reduction help. I think it was in the late '80s Porsche was losing money on every car they sold and so Toyota, or experts using Toyota's "just in time" processes helped trim the overhead.

      Just as GM never learned from it's experiences with it's NUMMI plant, VW will not learn, or does not want to learn from it's "little brother", how to build cars more profitably. VW today is somewhat like GM in that several different nameplates, under one structure, are competing with (duplicating?) each other. And in some cases, the cheaper brands inside VW Group build a product with better value...like Seat versus VW.

      It remains to be seen whether Porsche's having a larger stake in VAG will be a good thing in the long run.
      • 8 Years Ago
      This doesn't make sense. It was Ferdinand Piech who wanted to see VW buying the famed marque and it was he who told the world about the specs for the Veyron, his wife even owns one of the first 10 to be produced! I'm sure he would be reluctant to shut down what was his pet project, and as he is the second largest individual Porsche shareholder, his influence is considerable there as well as at VW.
      • 8 Years Ago
      Yeah. Seems like Bugatti leaves much to be desired =)
      • 8 Years Ago
      Why would Porsche want to take aim at a classic marque anyway? Are they taking the cheap shot so the forthcoming GT1 can have less competition? In my opinion Bugatti shouldnt go down without a fight. #8 is right also, Porsche is building far too many cars, especially the 911. I see so many Porsches that they no longer catch my eye. Thats just me.
      • 8 Years Ago
      I don't see why they don't just raise the price of the Veyron. It's the fastest street-legal car in the world, and if people are already shelling out the one and a half million, they will surely pay an additional million or two. Only those with THAT kind of disposable income would/could afford one to begin with.

      $28,000/month payments for the lose?
      • 8 Years Ago
      I don't see any harm in having a little foresight: the money didn't go down the drain! It is a marvelous piece of marketing for the entire group and a great way to put the Bugatti name on the map again.

      The development of an amazing (out of this world) engine and transmission costs money, of course, but they will not spend it again if they use it in new models, so, besides the great investment in marketing it was, it can even be profitable in the long turn.

      You can't run Bugatti like you'd run a common marque... not even like Porsche.

      But it's strange that Porsche is being too simplistic about that: they have some sense of strategy... There must be something we don't know.

      Porsche could even benefit from some of Bugatti's techonology for sure (and vice-versa, why not).
      Carlos
      • 8 Years Ago
      My question is why do any of you care that Porsche is going to wack Bugatti anyway? None of you can afford a Bugatti so why worry? As for Porsche doing it for profit, it makes sense, also I do have to agree that Porsche is beginning to lose some of it's identity by creating a lot of these low priced cars, but on the flip side, that means more Porsche fun for everyone.
      • 8 Years Ago
      Which Porsche model does any Bugatti compete with anyway? The sold-out Carrera GT? The Cayman? The Cayenne? Bugatti is a financial drain on an unfocused VW. That is the ONLY reason Porsche should and probably is taking aim at the brand.
      • 8 Years Ago
      I just hope that if they do the coachwork approach, they still do the superlight two place roadster rumored recently. I'd pay through the nose for a small, exquisitely finished lightweight Bugatti roadster. I'd do it in a heartbeat. And it's because of the awesome achievement of the EB110. They can't throw that away.
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