The giant Volkswagen Group is considering the future of its Bugatti, Lamborghini and Ducati brands , now that it is heading in a direction with no return to electric mobility.
Direction that reflects the rapid changes the automotive industry is undergoing and that requires huge funds — the Volkswagen Group will invest 33 billion euros by 2024 in electric cars — and substantial economies of scale to more quickly recoup its investments and enhance profitability.
And it is at this point, that of economies of scale, that Bugatti, Lamborghini and Ducati leave something to be desired in a future electrical transition, due to the specificities of each one of them.
According to Reuters, which received word from two (unidentified) Volkswagen executives, the German group has to determine if it has the resources to develop new electric platforms for these smaller, specialized brands, while investing thousands of million euros in the electrifcation of its conventional cars.
If they determine that there is no scope to invest in specific solutions, what future will they have?
The doubt about whether or not to invest in these dream machine brands comes not only from their low sales volume — Bugatti sold 82 cars in 2019 and Lamborghini sold 4554, while Ducati sold just over 53,000 motorcycles —, as well as the level of appeal generated by these brands' electric vehicles to their fans and customers.
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Thus, several scenarios are already being discussed for Bugatti, Lamborghini and Ducati, which range from technological partnerships, to its restructuring and even a potential sale.
This is what we saw recently, when Car Magazine stated that Bugatti had been sold to Rimac, the Croatian company that seems to attract the entire car industry when the topic is electrification, in exchange for a significant increase in Porsche's share in the shareholder structure of company.
How did we get here?
The investment that the Volkswagen Group is carrying out is massive and in this sense Herbert Diess, executive director of the Volkswagen Group, is intensely looking for ways to release more funds for the required investment.
Speaking to Reuters, Herbert Diess, without addressing Bugatti, Lamborghini and Ducati in particular, said:
“We are constantly looking at our brand portfolio; this is particularly true during this phase of fundamental change in our industry. Given the disruption of the market, we have to focus and ask ourselves what this transformation means for the individual parts of the group.”
“Brands have to be measured against new requirements. By electrifying, reaching, digitizing and connecting the vehicle. There is new room to maneuver and all brands have to find their new place.”
Source: Reuters.