Bugatti halt plans new supercar amid pandemic woes

French automaker Bugatti has announced that it will be putting plans for a second model to go alongside the Chiron model ahead of parent company Volkswagen's investment review next month.

The decision was made owing to the damage the automotive industry has faced in the wake of the Covid-19 pandemic, ramifications that can be felt in all the major automotive markets around the world.

The announcement was made by Bugatti executive Stephan Winkelmann during an interview on Bloomberg TV, despite the French automaker reeling in record revenue this year, Winkelmann added.

Winklemann said: “We had talks about a second-model lineup. This was now blocked due to the coronavirus crisis; we’re not talking about what’s coming next.”

Car manufacturers such as Bugatti are constantly facing pressure in the auto-market owing to their reliance on combustion engines in a world that is inching ever closer to net-neutrality, particularly in their key markets. Furthermore, the effects the pandemic has had on both public and private travel has made justifying the advanced costs for developing such supercars difficult.

Mr Winkelmann added: "2020 may be the best year ever for us, even as the virus crisis held back growth. The robust order book through next year gives us peace of mind."

According to the executive, as much as 70 to 80% of the planned output for 2021 have already been sold.

However, pandemic woes for the corporation can only be exacerbated by the news that Volkswagen is considering selling the company to Croatian company Rimac Autobili.

VW are due to review spending plans towards the end of next month. Pressure on budgets is set to surge after the Covid-19 ground the industry to a halt and has left potential economic devastation in its wake. Under their current five-year budget, the German manufacturer is set to pump €33 billion by 2024 into a new fleet of battery-electric cars.

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