Filed under: Supercars, Bugatti, Lamborghini, Volkswagen, Earnings/Financials
VW chief hints at keeping Lamborghini and Bugatti
Recent comments by Volkswagen's new head honcho Martin Winterkorn could counteract rumors of the automotive giant spinning off or selling its two golden-boy exotic supercar subsidiaries, Lamborghini and Bugatti.
Winterkorn, you may recall, was promoted to the big chair at VW Group from his former seat as head of Audi. He was reported to have been opposed to his successor's seemingly frivolous expenditures on the Bugatti Veyron project. As head of Audi he was in charge of Lamborghini and oversaw the final development of the Murcielago and Gallardo, so he is certainly not without his supercar credentials. He's also seen the direct benefit of the Gallardo's contribution to the Audi R8 sports car and to the engines in the S6 and S8 sports sedans.
Porsche AG, which has been increasing its stake in VW Group, has made public its opposition to Volkswagen's production of such exotics (surprise surprise), and has threatened to relegate Bugatti to near oblivion. Not on my watch, says Winterkorn. "Development in the upper segments undertaken by Lamborghini and Bugatti has been advantageous for all the brands."
[Source: Leftlane News]
Reader Comments (Page 1 of 1)
Peter 9:48AM (2/15/2007)
Piech's philosophy has always been to promote competition within the company, so even if Lambo was interfering with Porsche that would be no reason to get rid of it. Bugatti? Even a future smaller model will still be a different league altogether. Plus it's Piech's baby, no way his man Winterkorn would dare to touch it.
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Icheb 10:46AM (2/15/2007)
"He was reported to have been opposed to his successor's seemingly frivolous expenditures on the Bugatti Veyron project"
That would be PREdecessor, thank you.
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mike 11:26AM (2/15/2007)
Bugatti just loses money. It's not like people think a Volkswagen is a Bugatti because they own the company. Most people don't even know they are associated except car guys.
Simple fact: Porsche owns a huge part of VW, you have to run your business for profit of your shareholders. Otherwise your not going to be the CEO for long.
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Harry Hazeel 12:00PM (2/15/2007)
Hmm... Commandant Piech is the second largest shareholder in Porsche and I can't imagine that he'd be happy to see the Veyron cut loose.
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ruggels 12:58PM (2/15/2007)
"Simple fact: Porsche owns a huge part of VW, you have to run your business for profit of your shareholders. Otherwise your not going to be the CEO for long."
Simple fact: VAG has a long time history of entering new segments with loss leading profits. Following your advise, the original A8 would not have been a wise move, yet though every MK1 sold was at a loss, Audi is now VAG's profit leading marque. Furthermore, VAG does not answer to shareholders, while porsche may have a majority stake in he board, that reality still holds true.
Try not to just apply GM style arguments on VAG unless you're going to take into account their actual history.
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The Doctor 1:19PM (2/15/2007)
"Furthermore, VAG does not answer to shareholders"
Perhaps you don't understand the concept of a publically listed companuy. Since VW is an Aktiengesellschaft it most definately answers to its shareholders even if it has the soon-to-expire regulation that no one body can have more than 20% of the voting rights.
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