Bugatti Veyron: An Icon of Luxury and Speed
The Bugatti Veyron was launched in 2005 as part of an ambitious vision to create the world’s fastest, most powerful, and most luxurious car. Ferdinand Piëch, the visionary behind today’s Volkswagen Group and the grandson of Ferdinand Porsche, led the project. The passion for speed and luxury was embedded in his DNA.
One of Bugatti’s most impressive engines powered the supercar: a formidable W16 with an 8.0-liter displacement and four turbochargers. This engine enabled the Veyron to accelerate like a rocket and break top speed records, exceeding 250 mph.
The name “Veyron” pays tribute to Pierre Veyron, a Bugatti driver and engineer who won the 24 Hours of Le Mans in 1939 with one of the brand’s cars.
Developing the Veyron took six years, mainly due to the challenge of creating an engine that could deliver 1,001 horsepower and 1,400 Nm of torque. Engineers had to install 10 radiators to keep this powerful beast cool.
The exclusivity of the Bugatti Veyron was evident not only in its $1.7 million price tag but also in the costs associated with its maintenance. A set of specially designed Michelin tires cost a staggering $38,000 and needed to be replaced every 4,000 km. When driven at top speed, these tires would last only about 15 minutes before disintegrating. Additionally, the 106-liter fuel tank would be empty in around 12 minutes. Unsurprisingly, the Veyron’s maintenance costs are beyond the reach of most buyers.
The Veyron wasn’t just about speed but also a symbol of extreme luxury. Every detail, from the materials used to the craftsmanship, exemplified the highest quality. The supercar was like a work of art on wheels. Owning one was a statement that you could afford the best. Aspiring to own one of the special editions pushed the cost even higher, with some versions exceeding $2.7 million.
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A Costly Business Venture for Volkswagen
Despite its hefty selling price, Volkswagen surprisingly lost money on every Bugatti Veyron sold. It didn’t lose just a little, but a significant amount.
According to financial research firm Bernstein Research, the Volkswagen Group lost about $6.24 million for each Bugatti Veyron sold. However, experts later cautioned that this should be taken with a grain of salt, given that the figure was based on rough estimates.
Ironically, this financial setback is due to Veyron’s engineering and design excellence. Volkswagen invested an astounding $1.62 billion to develop what it hoped would be the perfect car.
Over 10 years, Bugatti only sold 450 Veyron units, meaning the investment in research and development far exceeded the revenue generated from sales. This imbalance led to a significant financial loss.
The Veyron’s development costs clearly eclipsed its sales revenue. However, the technology that emerged from this project laid the groundwork for an entire generation of supercars. Its legacy has paved the way for breaking numerous speed records, including the remarkable 304.77 mph achieved by the Bugatti Chiron Super Sport 300+ in 2019.
Volkswagen was willing to accept these losses to demonstrate its capability to produce the world’s best supercar. Although the Veyron may not have been a financial success on its own, it successfully established Bugatti as a leading brand in the luxury supercar market. This “failure” ultimately turned into a big triumph, although a very costly one.
Images | Yannis Zaugg | Jacob Vizek
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The post The Bugatti Veyron Was a Fascinating $1.7 Million Supercar. Yet, Volkswagen Lost $6.7 Million for Every Unit Sold appeared first on Xataka On.
