Bugatti Veyron 16.4 in all its glory!

If there was ever a doubt in the halo effect that accompanies a super car launch… if you ever thought Porsche’s Carrera GT, Lamborghini Reventón, Aston Martin’s One-77, VW’s Phaeton, Mercedes SLR, Acura’s NSX, Nissan’s GT-R, and Audi’s R8 were a waste of space and a money losing venture, you were wrong. VW Group’s crowning achievement is undoubtedly the venerable Bugatti Veyron 16.4.

Acquired in 1998 from Italian entrepreneur Romano Artioli, VW immediately set to work building a successor to the EB110. It was considered by many to be the most sophisticated car of its kind at the time, a trait that followed in VW’s iteration called the Veyron 16.4. Even at its introduction and production start in 2005, VW never intended the Veyron to surpass 300 units. Indeed, the company has said that after 300 are produced, the car will be discontinued. Interestingly, this has not resulted in a static design and the company has continued to pump out alterations including “special editions” and a Gran Sport, replete with a removable roof.

It has been said by many that the Bugatti is the ultimate supercar, not just of today, but also of all time. Those who make that argument point to the jaw-dropping 0-60 mph times under 2.5 seconds and a top speed in excess of 400 KM/hour (250+ mph). Others marvel at the 16-cylinder, 4-turbocharger engine or the 10 radiators onboard. Still others marvel that at full speed, the car runs out of full in 12 minutes and the tires burn to a crisp at 15 minutes. All of that in a rather un-dramatic, but stunning fashion.

It is the combination of those factors, the styling, and the EURO1,000,000+ price tag that make the Bugatti the ultimate halo product for VW Group. What is the halo effect, and why is it so important that VW stands to lose millions of euros for each Veyron produced? Halo products in general are the über-expensive, lower volume, highly publicized products that companies produce to create buzz for the company and the other products sold by that company. Even a low volume company like Porsche can benefit from a halo product because these products do so much to bring status and media coverage. A company that produces a rather low quality product can be perceived as one that more generally produces very high-end products. The company may actually lose money selling the halo product, but these halo products are often considered a marketing cost anyway. Ideally, a company would save massive amounts of money on advertising by introducing a product that is constantly covered by the media.

So it is with the Bugatti Veyron. Associating Bugatti with VW Group and providing otherwise sound business strategy has meant that VW has pushed past Toyota (IN A WEAK MARKET!) to become the number one producer of automobiles in not just Europe, but the entire world with 4.4 million units for the year according to IHS Global Insight.

http://www.autoobserver.com/2009/11/vw-pushes-past-toyota-as-global-production-leader.html

For an example of the aforementioned press coverage, see the following irrelevant, but positive pieces of new coverage:

• http://jalopnik.com/5401978/how-i-found-a-bugatti-veyron-engine-on-a-budapest-street
• http://jalopnik.com/5403061/16-million-bugatti-veyron-crashes-into-texas-lake
• http://jalopnik.com/5388709/bugatti-veyron-parking-fail

Volkswagen

VW in an effort to promote the tons of eco-friendlier cars launched at IAA in Frankfurt in September has decided to pursue eco-sales with a new eco-friendly racing series. The company is starting a single-make racing series where all of the cars run on bio-produced compressed natural gas. The model used in the series is the new Scirocco and should reduce racetrack CO2 output by 80 per cent over today’s racing fuels. The 2.0-liter 4-cylinder cars will have 220 horsepower on tap. Not bad for an alt fuel car!

Source: http://www.wired.com/autopia/2009/10/volkswagen-cng/

On other green fronts, VW Group is working with Stanford University in California in a US$5.75 million project to make VW the largest carmaker with R&D in Silicon Valley. Already the two companies have produced autonomous (read self-driving) versions of the VW Passat and now the Audi TT-S. The Audi TT-S will attempt to drive itself up the 14,110-foot Pike’s Peak next year, according Wired.

Source: http://www.wired.com/autopia/2009/10/vw-vail/

Audi’s Johan de Nysschen, critical of the Chevy Volt, took an interview with Time recently to express his views on the state of the luxury auto industry. He stated that Audi’s goal is to be the “top” German luxury manufacturer, but not necessarily in terms of sales. He also reiterated the push for more fuel-efficient vehicles leading to Zero emissions cars in the not so distant future.

Source: http://www.time.com/time/business/article/0,8599,1933906,00.html

Bugatti

Bugatti has unleashed a new concept car the 4-seat, 4-door (can you believe it???) Galibier 16C. Autocar magazine claims the production will start in 2013 at £900,000. We will believe it when we see it! Interestingly, the car’s engine will be the same as in the Veyron but will only sport 800BHP. Apparently, 200 get lost when adding 2 doors.

http://www.autocar.co.uk/News/NewsArticle.aspx?AR=244753

Caterham

Rarely does Caterham make the news, except when they unleash new, wildly fun lightweight roadster, but unfortunately, Caterham’s found Graham Nearn died in late October. Nearn has been selling the then-titled Lotus 7 since its introduction in 1959, and then when the car was discontinued in 1973, Nearn bought the rights and has been producing the car ever since and in more exciting, evolving versions. You can even buy a kit and put a Caterham 7 together yourself. If you are not familiar with this brand, you should be!

Top Gear featured it in a segment awhile back:

http://www.youtube.com/watch?v=cOxHV6QfJkg

Source: http://www.autocar.co.uk/News/NewsArticle.aspx?AR=244398

Ferrari

Beyond the KM has previously marveled at the sales resiliency of the Ferrari nameplate. But even THIS economy has the prancing stallion kow-towing to the bear market of Wall Street.

Its third quarter results for 2009 showed revenues of 396 million euros (£359m) – down from 450m euros (£408m) in the same period last year. It sold 1454 cars, down 4.3 per cent year on year.

However, Ferrari announced that it has grown its market share in every market it monitors, against a drop in supercar sales of around 40 per cent.

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Bugatti Bleu Centenaire

Bugatti Bleu Centenaire Interior

From Bugatti:

Hundred years of Bugatti

In 1909 Ettore Bugatti started his business in the Alsacian town of Molsheim, France. The name of the company: „Ettore Bugatti Automobiles i.Els.“. And although the name has changed into “Bugatti Automobiles S.A.S.”, the site and the philosophy of the brand have been preserved. In 2006 the first model under the „new management“ was launched, precisely 50 years after the last car of the original company left the gates of the Molsheim factory. The Bugatti Veyron has only been on the market for three years, but has already reached the status of being an undisputed part of automotive history, with 250 cars ordered to date, and nearly 200 cars delivered. This means that there are only 50 Veyrons to be sold until the limit of 300 units will be reached.

Building on the marque’s core values of “Art – Forme – Technique”,  Bugatti Automobiles S.A.S. has created the Bugatti Veyron Bleu Centenaire, a unique model to celebrate the hundred year old history of the company. This special model takes up the traditional Bugatti two-tone-specification, but portrays it in one rather than two colours: in the most known light shaded Bugatti blue. The Centenaire’s unique combination

of a “sprintblue matte” and “sprintblue gloss” hence offers a new impression of the two-tone-scheme known so far with parts of the engine also covered in this traditional Bugatti Blue.

The roof-trim-stripes and the exterior rearview mirrors are of polished, anodised aluminium. A special wheel design has been added – enhanced by a bright red brake-capillar.

The interior of the Centenaire is fitted in a special «snowbeige» leather with quilting on the seats. The central console is covered in the same leather. New LED lights, Park Distance Control and a rearview camera have become part of the standard equipment for all Bugatti Veyrons from this year onwards. The Bleu Centenaire shares all performance characteristics of other Veyron models performance-, acceleration- and deceleration characteristics which have been highly praised ever since the Bugatti Veyron first appeared on the scene. The car will cost 1,35 Million Euro exclusive taxes and transportation.

Bugatti Veyron Grand Sport

The Bugatti Grand Sport is a unique roadster based on the Veyron Coupé and was launched at last year’s Pebble Beach Concours d’Elégance in California. This new model will go into production at the end of April 2009 and will be limited to a total of 150 units over lifetime. The first chassis numbers are reserved for existing Veyron Coupé customers, honoring their loyalty and offering them the chance to be at top of the waiting list. This measure has been highly appreciated.

The 1937 Bugatti Type 57S Atalante sold by Bonhams earlier this month for a “royale” price of US$4,530,000 wasn’t shocking because it was one of 17 produced and was originally owned by the founder of the British Racing Drivers’ Club. Rather, the shocking bit comes that it sat in a barn, owned by doctor in Newscastle. Imagine the look on the person who first discovered this and actually KNEW its significance!

View Map of Newscastle

Unless you have been living in a cave the last two years, you know that Porsche’s strong financial position has allowed them to make a gradual play for VW’s shares. In fact it is just the latest in what has been a long-time partnership between the two + Audi. You may recall that many years ago Audi+Porsche dealerships often shared the same building.

But what we really didn’t know until recently was how Porsche might use VW in their product portfolio. Remember that the VW Touareg , Audi Q7, and Porsche Cayenne share the same platform. The benefit being significantly cheaper development costs. Bear in mind that Porsche has had a benefit in this partnership of releasing their Cayenne before VW and Audi have released their products. Ironically, it is the smashing success of the Cayenne product line that has given Porsche the ability to launch a takeover of VW.

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We’ve discovered a great new site that can help budget your costs for the next cross-country road trip.

http://costtodrive.com

To review the site, it’s a little slow at times, but if you have a 2000 or new car and have your itinerary planned out for your great drive across America, Cost2Drive can calculate, pretty accurately, the cost of driving from Phoenix to Los Angeles in a 2001 Honda Civic. The answer is of course: $35. The price for driving a $1.5mm Bugatti Veyron with more than 4 times the horsepower? $135. But guess what, you won’t get there any faster…at least not legally!