Volkswagen boss Matthias Müller has addressed the media, warning that cost cuts could see development of new models halted in the wake of the emissions scandal.
While investment in core vehicles will continue, the development of non-essential models, which are likely to include the successor to the Bugatti Veyron, could be put on ice for the foreseeable future.
Müller yesterday spoke to workers at Volkswagen’s headquarters in Wolfsburg, saying: “We will review all planned investments, and what isn’t absolutely vital will be cancelled or delayed. I will be completely clear: this won’t be painless.”
“In addition to the huge financial loss, this crisis is primarily a crisis about a loss of confidence. It affects the core of our company and our identity, our cars, and the essence of the brand: solidity, reliability and credibility.”
Top of the list of models expected to be left by the wayside is the Bugatti Chiron, which was touted as the successor to the Veyron and due to be unveiled at the Geneva Motor Show next March.
According to several reports, the Chiron would produce a monstrous 1,480bhp from a quad-turbocharged W16 petrol engine, enough to take it from 0-62mph in an incredible 2.3 seconds.
Compared with the Veyron Super Sport, which has held the Guinness World Record for the fastest production car since 2010, it’s 200bhp more powerful and rumoured to cost north of £1.6 million.
However, Müller stated: “Our most important task will be to regain lost confidence with our customers, partners, investors and the general public. 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,” he added. “But in this situation, in which we are dealing with four brands and many models, care is more important than speed.”
Müller, who took over after Martin Winterkorn resigned in the wake of the dieselgate scandal, also confirmed that technicians are close to fixing the defeat devices used on cars fitted with the EA189 diesel engine.
He stated that some cars will require a software upgrade only, while others will also require physical modifications, with the first recalls of affected cars due to begin in January next year.
“The technical solutions to the problems are in sight,” he said. “By contrast, the business and financial consequences are not yet foreseeable."
