Facing ever-stricter emissions laws, Volkswagen Group is evaluating whether its supercar brands are viable in an electric future.
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Update, 8 October 2020: Bugatti President Stephan Winkelmann has told media outlet Bloomberg the high-performance Volkswagen subsidiary has effectively halted all product development.

"We had talks about a second-model lineup," Mr Winkelmann said.

"But [this is now] blocked due to the coronavirus crisis; we’re not talking about what’s coming next."

Despite this, he stated the manufacturer is on track to turn a profit in 2020.

If reports of Rimac acquiring the brand are accurate, it's possible a high-performance electric powertrain will be externally developed to replace the current 8.0-litre W16 engine powering the Bugatti Chiron.

Winkelmann also served as the CEO of Lamborghini between 2005 and 2016, however he did not comment on the future with the Volkswagen brand.

1 October 2020: As Volkswagen Group transitions towards an electric car future, executives at the car company may be considering selling Lamborghini and Bugatti, according to a report from news outlet Reuters.

The unnamed sources say the company is reviewing how some of its niche brands – which also includes Ducati motorcycles – can be restructured, realigned, or even sold off, as the business moves towards a future with electrified powertrains.

The report comes only weeks after rumours surfaced of Volkswagen Group entering talks to offload Bugatti to Croatian electric supercar maker Rimac.

In October 2019, news outlet Bloomberg reported Volkswagen Group was considering selling Lamborghini, or spinning off the supercar brand into its own entity. Numerous reports of the company selling one or more of its marques have emerged as early as 2016.

While Europe's ever-tightening emissions laws are making the viability of large-capacity engines more difficult and expensive to develop, Lamborghini and Bugatti are also facing an internal threat as Volkswagen Group looks at ways to more than double its stock market value.

Despite selling the most amount of cars in the world last year, the company's valuation sits behind Tesla and Toyota.

Volkswagen Group bosses have signalled their intention to increase the company's valuation from its current market capitalisation of AU$120 billion to roughly AU$330 billion.

Currently, money earned from its passenger car divisions are said to be funding research and development at Bugatti and Lamborghini, but rarely do the results benefit the group's more common products.

This means development of petrol-powered supercars and hypercars are drawing funds away from hybrid and electric powertrain projects – along with autonomous driving technology – which can then be amortised across Volkswagen Group brands.

Volkswagen Group currently owns VW, Audi, Porsche, Bentley, Skoda, Spanish brand Seat, MAN and Scania trucks, as well as the aforementioned Lamborghini, Bugatti, and Ducati.