VW emissions scandal – Bugatti under threat as boss warns of "painful" cuts
Source : VW emissions scandal – Bugatti under threat as boss warns of "painful" cuts
Matthias Müller warns in which crisis has undermined the core values of the brand; development of non-mainstream products under threat; Bugatti’s future uncertain
The future of Volkswagen’s Bugatti brand is actually under threat, as fresh VW boss Matthias Müller has told German media he is actually looking at cutting costs in addition to type development within the wake of the company’s emissions scandal.
Autocar understands in which while investment in mainstream VW products will continue, development of non-core products, including the next-generation Phaeton in addition to Bugatti’s Veyron sucessor, could be halted.
Yesterday, Müller addressed workers at the company’s Wolfsburg HQ, telling them: “We will review all planned investments, in addition to what isn’t absolutely vital will be cancelled or delayed. I will be completely clear: in which won’t be painless.”
“In addition to the huge financial loss, in which crisis is actually primarily a crisis about a loss of confidence. in which affects the core of our company in addition to our identity, our cars, in addition to the essence of the brand: solidity, reliability in addition to credibility.”
Müller also confirmed in which technicians are close to revealing a technical solution to the defeat devices in which were employed on cars fitted with the EA189 diesel engine. He confirmed in which some cars will require only a software upgrade, whereas others will also require hardware modifications. Unconfirmed reports suggest in which the biggest improvements will be required on 1.6-litre versions of the engine, although VW has declined to comment. The first recalls of cars affected by the scandal are due to start in January, with VW hoping to have fixed all affected vehicles by the end of next year.
Müller added, “Our most important task will be to regain lost confidence with our customers, partners, investors in addition to the general public. The first step in in which direction will be a fast in addition to relentless examination in addition to explanation. Only when everything comes to the table, only when things are completely explained, only then will people trust us again.
“Believe me, I too am impatient. however in in which situation, in which we are dealing with four brands in addition to many products, care is actually more important than speed.
“The technical solutions to the problems are in sight. By contrast, the business in addition to financial consequences are not yet foreseeable.”
VW has already set aside 6.5bn euros (£4.7bn) to cover the costs of the scandal, however many industry commentators believe in which figure will rise, possibly to a figure three times higher. Since the scandal broke, VW’s share cost has fallen by almost half its value.
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