The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Gourav Bhattacharjee, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
Bugatti Veyron- The car know for being the fastest car in production after striking a record of 427.6 km/hour has just been replaced by its successor, Bugatti Chiron, launched in the recently organised 86th Geneva International Motor Show. This car will hit 100km/hour in less than 2.5 seconds and has a top speed of 500 km/hour. The car is powered by 1500 HP W16 engine pushed by two stage, turbo boosting technology offering a torque of 1600 Nm.
Bugatti Veyron had been both the Good Boy and the Bad Boy for Volkswagen group right from its launch in the previous decade. The car had received the tag of being the ‘Fastest Car in production’ after going through rounds of controversies. The manufacturer had essentially paid special emphasis about selling these cars to only those who would take care of the car properly. This attracted a lot of negativity from the influential customers whose request for sale of this car was rejected by VW group. This not impacted the sale of Bugatti Veyron but also affected the sale of Volkswagen cars. In addition to this, every sale of a Bugatti Veyron had made the coffer of Volkswagen group lighter. As per the predictions made by analysts, the Volkswagen group used to face a loss of 5 Million $ for each sale of Bugatti Veyron.
On the contrary, the newly launched Bugatti Chiron is expected to be sold at a profit. As per the declaration made by Bugatti Boss, Wolfgang Diirheimer, all the profits which shall be earned from the sale of Bugatti Chiron, would be used in the R&D of next Bugatti products, rather than filling the pockets of Volkswagen group. It has been said that this car would have a lifespan of 8 years and 500 units of the car would be sold. This target shall not be hard to achieve as almost 200 cars have already been booked prior to its launch. Moreover, if the trend is reviewed properly, we can expect a new Bugatti product in the next 4-5 years.