PILLAIS COLLEGE OF ARTS, COMMERCE &SCIENCE.

MARKETING MANAGEMENT

PROJECT TO- prof.PRERNA

y NAME- ARUN RAJ.S.PILLAI. y GROUP- SY.B.M.S-B. y ROLL NO- 2361.

TOPIC VOLKSWAGEN GROUPS BUGATTI.

DECLARATION
I ARUN RAJ.S.PILLAI, hereby declare that the project which I am submitting is 100% genuine and is a result of my sincere hard work and toiling. This project has never been used, presented, preserved or publicized in any other medium, institution, seminar or otherwise before. I hereby clarify and promise that the content of this project is correct and true as per my knowledge and completely undertake the responsibility for the contents that are published in this project.

ACKNOWLEDGEMENT
I ARUN RAJ.S.PILLAI, hereby acknowledge the guidance and motivation provided to me by my professor incharge. I also thank our college for providing me this great opportunity to present such a great and innovative and research oriented project, thus enabling me to improve my knowledge and enabling a new approach and thinking capability to be inducted into me, through this project. I want to thank my Parents who have encouraged me in every step of my project and strengthen me from within. Finally I thank the almighty for enlightening me with the courage, strength and will from within to complete this project on time without any hindrance.

CERTIFICATE

This is to certify that Mr. ARUN RAJ.S.PILLAI from SY.B.M.S b Of Pillais college of arts, commerce and science has successfully completed his project on VOLKSWAGENS BUGATTI, under the able guidance of PROF. PRERNA. The project was handed over to professor in charge PRERNA on time meeting all the criterias put forward to the project.

Sign

EXECUTIVE SUMMARY

This project provides detailed and elaborate information about the automobile giant VOLKSWAGEN and its most celebrated luxury brand BUGATTI.
VOLKSWAGEN is a German automobile maker. Volkswagen was originally founded in 1937 by the Nazi trade union, the German Labor Front (Deutsche Arbeitsfront). Literally, the word "Volkswagen" means "people's car." As a carmaker, they are under an obligation to their customers and society to supply high-quality products that are safe and environmentally compatible. The Volkswagen Group with its headquarter in Wolfsburg is one of the worlds leading automobile manufacturers and the largest car producer in Europe. . The Volkswagen Group's models are sold in more than 150 countries. The "Volkswagen Group" consists of some of the biggest names in the Automobile Industry. The Group consists of eight brands: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda and Volkswagen Commercial Vehicles. The product range extends from low-consumption small cars to luxury class vehicles.

Bugatti was founded in 1909 in Molsheim, France, as a manufacturer of high-performance automobiles by Italian-born Ettore Bugatti. Bugattis were well-known for the beauty of their designs. They were regarded as mean speedy demons on road, are still carry on the reputation. They stand as the bench mark for luxury and speed, and is the synonym of performance, class, craftsmanship and art full design. Volkswagen AG purchased the rights to produce cars under the Bugatti marquee in 1998. BUGATTI now stands as a part of the great VOLKSWAGEN family.

TITLE
VOLKSWAGEN GROUPS BUGATTI.

OBJECTIVES:

y Group Values y Customer Nearness

y Top Performance

INTRODUCTION
Volkswagen was originally founded in 1937 by the Nazi trade union, the German Labor Front (Deutsche Arbeitsfront). Literally, the word "Volkswagen" means "people's car." As a carmaker, they are under an obligation to their customers and society to supply high-quality products that are safe and environmentally compatible. The Volkswagen Group with its headquarter in Wolfsburg is one of the worlds leading automobile manufacturers and the largest car producer in Europe. In the early 1930s German auto industry was still largely composed of luxury models, and the average German rarely could afford anything more than a motorcycle. The "Volkswagen Group" consists of some of the biggest names in the Automobile Industry. The Group consists of eight brands: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda and Volkswagen Commercial Vehicles. Each brand has its own character and operates as an independent entity on the market. The product range extends from low-consumption small cars to luxury class vehicles. The Volkswagen Group's models are sold in more than 150 countries. The Board of Management of Volkswagen AG comprises five members. Each Board Member is responsible for one or more functions within the Volkswagen Group. Prof. Dr. Martin Winterkorn is the Chairman. The work of the Board of Management of Volkswagen AG is supported by the boards of the brands and regions as well as by the other group business units and holdings. The Supervisory Board is responsible for monitoring the Management and approving important corporate decisions. Moreover, it appoints the Members of the Board of Management. The Supervisory Board of Volkswagen AG comprises 20 members and conforms to the German Co-determination Act. Dr. Ferdinand K. Pich is the Chairman of the Supervisory Board of Volkswagen AG.

Bugatti was founded in 1909 in Molsheim, France, as a manufacturer of highperformance automobiles by Italian-born Ettore Bugatti.

Bugattis were well-known for the beauty of their designs and for the large number of races they won. Ettore Bugatti was from a family of artists and considered himself to be both an artist and constructor. The death of Ettore Bugatti in 1947 proved to be the end for the marquee, and the death of his son Jean in 1939 ensured there wasn't a successor to lead the factory. No more than about 8000 cars were made. The company struggled financially, and released one last model in the 1950s, before eventually being purchased for its airplane parts business in the 1960s.Today the name is owned by Volkswagen Group, who have revived it as a builder of limited production

exclusive sports cars.

RESEARCH METHODOLOGY: SECONDARY

Volkswagen (abbreviated VW) is the original and biggest-selling marquee of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Skoda marquees and the truck manufacturer Scania. Volkswagen means "people's car" in German, where it is pronounced [ f lks va en]. Its current tagline or slogan is Das Auto (in English: The Car).

Volkswagen was originally founded in 1937 by the Nazi trade union, the German Labor Front (Deutsche Arbeitsfront). In the early 1930s German auto industry was still largely composed of luxury models, and the average German rarely could afford anything more than a motorcycle. Seeking a potential new market, some car makers began independent "peoples' car" projects Mercedes' 170H, Adler's Autobahn, Steyr 55, Hanomag 1,3L, among others. The trend was not new, as Bla Barnyi is credited with having conceived the basic design in the middle 1920s. Josef Ganz developed the Standard Superior (going as far as advertising it as the "German Volkswagen"). Also, in Czechoslovakia, the Hans Ledwinka's penned Tatra T77, a very popular car amongst the German elite, was becoming smaller and more affordable at each revision. In 1933, with many of the above projects still in development or early stages of production, Adolf Hitler declared his intentions for a state-sponsored "Volkswagen" program. Hitler required a basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph). The "People's Car" would be available to citizens of the Third Reich through a savings scheme at 990 Reichsmark, about the price of a small motorcycle (an average income being around 32RM a week).

Despite heavy lobbying in favor of one of the existing projects, Hitler chose to sponsor an all new, state owned factory. The engineer chosen for the task was Ferdinand Porsche. By then an already famed engineer, Porsche was the designer of the Mercedes 170H, and worked at Steyr for quite some time in the late 1920s.

When he opened his own design studio he landed two separate "Auto fr Jedermann" (car for everybody) projects with NSU and Zndapp, both motorcycle manufacturers. Neither project come to fruition, stalling at prototype phase, but the basic concept remained in Porsche's mind time enough, so on 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for Hitler.

Changes included better fuel efficiency, reliability, ease of use, and economically efficient repairs and parts. The intention was that ordinary Germans would buy the car by means of a savings scheme ("Fnf Mark die Woche musst Du sparen, willst Du im eigenen Wagen fahren" "Five Marks a week you must put aside, If in your own car you want to ride"), which around 336,000 people eventually paid into. Prototypes of the car called the "KdF-Wagen" (German: Kraft durch Freude "strength through joy"), appeared from 1936 onwards (the first cars had been produced in Stuttgart). The car already had its distinctive round shape and aircooled, flat-four, rear-mounted engine. The VW car was just one of many KdF programs which included things such as tours and outings. The prefix Volks ("People's") was not just applied to cars, but also to other products in Europe; the "Volksempfnger" radio receiver for instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH (sometimes abbreviated to Gezuvor was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk GmbH" on 16 September 1938.

 A BRIEF JOURNEY THROUGH A LONG HISTORY

When in 1937 the company known as "Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH" was founded, no one could have guessed that it would one day be Europe's largest carmaker. The history of the company - with all its trials and tribulations - is first and foremost a story of impressive success. It is this very company that today company come to know as VOLKSWAGEN.

1937-1945 On May 28th, 1937 the "Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH" company was founded, and on September 16th, 1938 it was renamed "Volkswagenwerk GmbH". In early 1938, in what is today Wolfsburg, work began on construction of the Volkswagenwerk plant which was to house production of the new vehicle designed by Ferdinand Porsche.

1945-1949 After the end of the Second World War, in mid June 1945, responsibility for Volkswagenwerk was placed in the hands of the British Military Government. Under the management of Major Ivan Hirst, mass production of the Volkswagen Beetle was started.

1949-1960 On March 8th, 1950 the Type 2 went into production, expanding the company's product range. The Volkswagen Bus, till today known to many as the "VW Bully", soon created rising demand thanks to its multifunctional capabilities. In 1956 a separate manufacturing base for the transporters was established in Hanover, at the same time setting down the roots of today's Volkswagen Commercial Vehicles brand.

1960-1980 On February 17th, 1972 Volkswagen broke the world car production record: with 15,007,034 units assembled, the Beetle surpassed the legendary mark achieved by the Ford Motor Company's Model T, popularly known as the "Tin Lizzy", between 1908 and 1927. In 1973 the Passat became the first model of the new generation of Volkswagen vehicles to go into production. The Passat was built in line with the modular strategy, by which standardized components usable in a range of different models provide significant rationalization. 1980-1990 In June 1983 production of the second-generation Golf began. The car was designed for a largely automated assembly process, and in the specially erected final assembly hall, designated Hall 54, robots were deployed for the first time in vehicle manufacture.

1990-2000 With the production launch of the Lupo 3l TDI, the first production car came to offer fuel consumption of just three liters per 100kilometers, in July 1999, Volkswagen once again made automotive history.

2000-2003 In August 2002, at Volkswagen Slovakia, as in Bratislava, mass production of the Touareg, a luxury-class off-road vehicle, was started, marking the Volkswagen brand's move into an entirely new market segment.

In December 2002 the "Auto 5000 GmbH" company, operating a plant at the Group's site in Wolfsburg, started production of the Touran compact van. A special collective pay model had been developed, aimed at implementing lean production and involving flat hierarchies, team working, flexible working hours and the deployment of more process expertise by the workforce.

2003 production of the fifth-generation Golf was started, embodying a new dynamism in its design and engineering. Volkswagens Products and Positioning

 Size, Growth Rates, and Main Products

In 2006, Volkswagen sold 5,192,576 vehicles worldwide, and sales in 2006 amounted to 5,192,576 million Euro. Volkswagen is headquartered in Germany, and the European Community (EC) represents by far the largest market for Volkswagens, with sales to EC countries comprising nearly 60% of Volkswagens global sales. Sales in Germany (27%) and Brazil (14%) account for the most significant segments of Volkswagens total sales. The U.S., Mexico, and Canada are, respectively, the seventh, thirteenth, and eighteenth largest markets for Volkswagen vehicles, with North Americans purchasing around 6% of all Volkswagens sold. Last year, the firm's global advertising budget was $1.1 billion, with non-U.S. advertising at $933 million. This contrasts heavily with the global balance of advertising outlays for many automobile firms. For example, Toyota has an advertising budget of $1.7 billion, with non-U.S. spending of $989 million. Volkswagens proportionally smaller marketing focus within the U.S. serves to illustrate the relative unimportance of the U.S. to Volkswagen from a global perspective. However, the importance of North American markets has been increasing. The automaker predicts total sales of 250,000 in 2008 in the U.S., and envisions a steady double-digit growth pattern in Canada and U.S. in the coming years. NAFTA will almost certainly act as a catalyzing factor in this growth. Volkswagen products sold in North America include the Passat, the Jetta, the Golf, the old Beetle (only in Mexico) and the new Beetle. The Jetta is Volkswagen's best seller in the United States.

MAJOR PRODUCTS THE MAJOR VOLKSWAGEN PRODUCTS INCLUDE. POLO

BEETLE

TOUAREG

JETTA

PASSAT

PHAETON

STRATEGY OF INTERNATIONAL BUSINESS  Modes of operation across globe Fluctuating Market Presence in North America In the 1960s, Volkswagen captured the North American market for the small, inexpensive automobile with the original Beetle, and soon established a Beetle assembly plant in Westmorland, Pennsylvania. However, with the rise of Japanese and other Asian manufacturers in the entry-level market during the 1970s and 1980s, Volkswagen saw its market share in North America fall precipitously. Also facing more stringent environmental and safety standards in the US and Canada in 1986 Volkswagen decided to cease all assembly operations in the U.S. and Canada and rely entirely on imports to service the market. Not facing the same constraints in Mexico, production of the Beetle continued at the Puebla plant. Emphasis on Europe From the mid-1980s Volkswagen's global strategy hinged on (1) Continued growth in production and demand for the Beetle in emerging markets (especially Latin America) and (2) A concentration on the European market as the motor of growth in innovative product lines. Indeed, the European market dominates Volkswagen's global sales. Not only has Volkswagen emerged as a leader in Europe, but in the post-Soviet era, Volkswagen has made considerable inroads in expanding production and sales throughout Eastern Europe, partly through its acquisition of Skoda Renewed North American Focus During the 1980s and 1990s growth in VW's European market share required that VW rely on Mexican capacity to meet demand in North America. This renewed emphasis on Mexican production was also fuelled by recognition of VW's price sensitivity in the U.S. market due to the depreciation in the dollar. (At current exchange rates, Mexican production is cost-competitive with production in Germany.) However, the most important aspect of Volkswagen's new strategy centers on the need for a strong presence in North America in the contest over global automobile markets. Part of this presence will take the form of imports from Europe (like the new Golf), but increased production in North America is also

essential. Accordingly, Volkswagen has raised its level of production in North America by 34% in the past two years. The establishment of a new assembly plant North America will be the most significant aspect of Volkswagen strategy in North America for some time to come. Building this facility will allow Volkswagen to take full advantage of North American free trade and to expand its market presence in North America. Parts Sourcing Volkswagen has historically relied on a system of global sourcing to supply parts to its assembly plants. In Mexico this has changed, however, as a direct result of the domestic content requirements of NAFTA. The purchase of parts from within North America, and particularly from the U.S. has expanded in order to meet the requirements of the NAFTA. Continuing to develop a network of North American parts suppliers will remain an integral part of Volkswagens North American strategy, especially in light of the proposal to locate a new assembly plant in North America. Production Techniques Volkswagen has kept up with industry wide trends towards increased use of new organizational orientations and methods of "just in time" production. Volkswagen has focused resources on its labour training programs, seeking to facilitate the rotation of work functions amongst employees. This development has allowed increased flexibility in the production of vehicles by ensuring that qualified personnel are available to accomplish a variety of tasks within their respective production segments. Volkswagen has also focused on reducing inventories through the use of "just in time" production, which has led to the creation of much closer ties between parts suppliers and assembly plants. The New Beetle A good sense of the Volkswagen's new marketing strategy can be derived from the high-profile launch of the new Beetle in 1998. Seeking to stage a "convincing comeback based on the needs and wants of U.S. customers", and unlike the entry-level Beetle of the 1960's, the 1999 Beetle is a modern car that is marketed to more affluent consumers whose preferences can be swayed on the basis of both performance and nostalgia. This is reflected in the new Beetle's

sticker price of $15,700 U.S. for the base model, which is priced above the Golf but below the Jetta. Fostering an Upscale Image While the arrival of the new Beetle promises to bring increases in sales of Volkswagens, the firm is emphasizing its desire to continue to improve sales of its upscale vehicles, like the Passat and the new W-12 sports car (Germany).Maintaining this focus on developing an image as a car maker that is a rival to BMW and Mercedes is particularly important in the U.S., where expanding into the upscale market will carry with it substantial long-term gains. Accordingly, Volkswagen plans to ensure the health of its U.S. advertising budget for these vehicles, even as the ad campaign for the new Beetle is launched. New Supplier Strategy Purchasing costs represent approximately 60% of the cost of production for Volkswagen cars, with 60-65% of parts coming from outside suppliers. (Of these suppliers, 80% produce in Germany, and 15-18% in rest of Europe, with the remainder elsewhere in North America and Asia.) Volkswagen has begun to include suppliers in the assembly process itself. By directly employing only engineers, managers and supervisors, and requiring suppliers to employ their own workers in the assembly plant, Volkswagen hopes to facilitate the development of new components and models. According to this new supplier strategy, parts suppliers are also expected to shoulder part of the financial burden of building the assembly plant itself. As a result, Volkswagen expects unprecedented productivity gains. If it proves effective, Volkswagen will use the strategy in production in North America and around the world.

BUSINESS MODEL

 Porters five force model

 Threat of new entrant: 1) Nissan, Renault, GM 2) New Technology

 Bargaining power of buyers: There will be an indirect relation between the bargaining power of buyers and various product segments. More options to choose from the segment Volkswagen operates in. Honda, Toyota (Accord, Civic, Corolla) already capturing bulk of the market due to its advanced petrol engines. Skoda has been successful mainly because of its diesel offerings (Octavia, Laura). The D segment Market has been growing consistently.

 Bargaining power of suppliers Bargaining power of suppliers would be high since VW does not deal in mass production unlike Maruti and Hyundai.

 Substitutes Volkswagen does not have substitutes in India currently for its diesel offerings except for the recently launched GM Optra and Hyundai Sonata. But Volkswagen easily scores over these products due to the brand recognition and loyalty it carries in the country. VW offers the widest range of diesel cars in the D segment. Niche products like Lamborghini & Bentley do not have competitors in the Indian market.

 Competitors: Honda, Toyota, GM, Hyundai are its direct competitors

The Indian subsidiary of German automobile manufacturer, Volkswagen AG (Volkswagen).Volkswagen entered the Indian passenger car market in 2001 by launching its car brand - Skoda. In 2007, two of its other brands Audi and Volkswagen, were also launched in India. Volkswagen Group India emphasized on all aspects of marketing mix including product, price, place and promotion. The company offered three brands including Audi, Skoda and Volkswagen that together comprised of 15 different models as of late 2009. Volkswagen Group India mainly catered to the luxury segment of the Indian car market. The company had established presence in India through separate distribution channels for each of its brands. In its initial years, Volkswagen Group India primarily used the print media to promote its products. However, considering the growth potential of India's automobile market, the company started using electronic, digital and out of home media along with print media. In November 2009, the company launched an integrated marketing campaign to strengthen its brand image. Evaluation of Volkswagen in its marketing strategies in India: Branding: A brand is product that is distinguished by its personality & the major element that distinguishes a brand is its tagline. In case of modern Volkswagen it simply reads Volkswagen Das Auto in English the Car. It is short, its catchy & it simply says what it produces. As fast as Volkswagen is concerned its size is huge, its popularity is quite restricted to Skoda &Audi. Both of these brands have very well established themselves as reliable, luxurious &quality car companies. This was achieved by both of these car companies when they organized the Pre Monsoon Campaign: which enabled their customers across its 61 dealerships a 20point free check-up of the car which included cleaning of the plenum chamber, inspecting the tire pressure & the wheel alignment, brake pads, wiper functions, all the interior & exterior lighting, among other things. This was mainly done to ensure safe & hassle free driving. On the other hand, Volkswagen had failed to capture the benefits of branding in the initial stages of their own launch, but in recent times, with their new advertisements & slogans they have been in a position to establish themselves with the likes of Toyota India & Maruti-Suzuki. Today Volkswagen has a very good grasp of the Indian Automobile Market. This was shown when they launched their best seller Polo in India at a very competitive price in 2010 thereby beating the competition from Honda (with their car model of the Jazz). But they could not duplicate this strategy for Skoda &

Audi as those are luxurious car brands. Also they have an established car market for their mid-segment cars namely the Skoda Octavia & the Audi A4 series.

 Price In its 61 dealerships across India VW offers a high price for their cars as compared to their competitors Ford & Honda. But it makes up for those high prices by giving their customers an interest rate of a mere 4.5% to 5% as compared to 8% interest rates on the car loans given by banks to other car makers. This can be attributed to Volkswagens Financial Services, which it operates solely to support its car sales to its customers.

INTERNATIONAL FINANCIAL STATEMENT

REVENUE BY GEOGRAPHY Revenue 105.2 billion (2009) Operating income 1.855 billion (2009) Profit 960 million (2009) Total assets 177.2 billion (2009) Total equity 37.43 billion (2009) Total revenue in the fourth quarter was up 3.3% to 979.5m. Total revenue increased $1,911 million, or 32%, from a year ago. Net interest income increased $679 million, or 30%, largely due to lower funding costs on certain trading positions. Deposit and loan growth, partially reflecting our prior year acquisition of RBTT Financial Group (RBTT) also contributed to the increase. These factors were partially offset by spread compression in our bankingrelated and wealth management businesses reflecting lower interest rates and higher impaired loan balances, largely in U.S. banking. Net interest margin was 1.78%, up 36 bps, largely reflecting lower funding costs on trading positions in Capital Markets, partially offset by lower interest rates and the impact of changes in our Canadian retail product mix largely attributable to strong growth in our personal deposit accounts and home equity lending products. Investments-related revenue decreased $145 million, or 12%, mainly due to lower mutual fund distribution fees and lower fee-based client assets resulting from capital depreciation, partially offset by higher transaction volumes reflecting improved investor confidence, and the inclusion of the full quarter of revenue from our prior year acquisition of Ferris, Baker Watts Inc. (FBW). Insurance-related revenue increased $718 million, or 84%, largely due to the change in fair value of investments backing our life and health policyholder liabilities, which was largely offset by higher related PBCAE. For further details, refer to the Insurance section. Trading revenue in Non-interest income increased $788 million. Total trading revenue, which comprises trading-related revenue recorded in Net interest income and Non-interest income, was $1,608 million, up $1,223 million, largely due to stronger trading revenue in our U.K., U.S. and Canadian fixed income and money markets businesses, and U.S.-based equity businesses. Lower market environment-

related losses on held-for-trading (HFT) securities and gains on credit valuation adjustments on certain derivative contracts resulting from the tightening of credit spreads also contributed to the increase.

Critical analysis of code of conducts /HR policies

Volkswagen has numerous established HR policy instruments that have proven their worth over the years. The Volkswagen Group considers it important to employ Volkswagen personnel in accordance with their individual capabilities. One example of this is the "Silver Liner" project at Audi. Here Audi deliberately employs older workers for the assembly of the Audi R8, drawing on their many years of experience. In 2001 Volkswagen launched the Work2Work programme, which offers new employment opportunities to those who are unable to continue working in their previous positions following a physical injury or severe illness. Operating under the premise that "adding value earns respect"; the goal of the initiative is to place these employees in positions that are suitable to their physical abilities and still allow them to add value. Work2Work contributes to the job security of Volkswagen personnel. Volkswagen is also trailblazers in the area of knowledge transfer, with a clearly structured programme to ensure that older employees pass on their expertise to their successors. Workplaces have been redesigned in line with ergonomic principles, a preventive health measure that benefits all Volkswagen employees and creates ageappropriate workplaces. Existing workplaces have been optimized (corrective ergonomics) and ergonomic criteria have been taken into account in the product creation process (constructive ergonomics). One goal shared by the Group management and the Works Council is to make certain that working conditions and performance requirements take the age and health of Volkswagen employees into account. We also plan to increase Volkswagen focus on preparing the company for demographic change. This was the goal of the collective bargaining agreement on processes and procedures finalized in 2007. Known as "Demographic Change I", the agreement has the goal of promoting and protecting health with employees participating to the fullest extent possible on their own initiative.

BUGATTI

Bugatti was founded in 1909 in Molsheim, France, as a manufacturer of highperformance automobiles by Italian-born Ettore Bugatti. Bugattis were well-known for the beauty of their designs (Ettore Bugatti was from a family of artists and considered himself to be both an artist and constructor) and for the large number of races they won. The death of Ettore Bugatti in 1947 proved to be the end for the marquee, and the death of his son Jean in 1939 ensured there wasn't a successor to lead the factory. No more than about 8000 cars were made. The company struggled financially, and released one last model in the 1950s, before eventually being purchased for its airplane parts business in the 1960s. Today the name is owned by Volkswagen Group, who have revived it as a builder of limited production exclusive sports cars. Under Ettore Bugatti Founder Ettore Bugatti was born in Milan, Italy, and the automobile company that bears his name was founded in 1909 in the town of Molsheim located in the Alsace. The company was known both for the level of detail of its engineering in its automobiles, and for the artistic way in which the designs were executed, given the artistic nature of Ettore's family (his father, Carlo Bugatti (18561940), was an important Art Nouveau furniture and jewelry designer). The company also enjoyed great success in early Grand Prix motor racing, winning the first ever Monaco Grand Prix. The company's success culminated with driver Jean-Pierre Wimille winning the 24 hours of Le Mans twice (in 1937 with Robert Benoist and 1939 with Pierre Veyron). Famous Bugattis include the Type 35 Grand Prix cars, the Type 41 "Royale", the Type 57 "Atlantic" and the Type 55 sports car.

DESIGN Bugatti's cars were as much works of art as they were mechanical creations. Engine blocks were hand scraped to ensure that the surfaces were so flat that gaskets were not required for sealing, many of the exposed surfaces of the engine compartment featured Guilloch (engine turned) finishes on them, and safety wires threaded through almost every fastener in intricately laced patterns. Rather than bolt the springs to the axles as most manufacturers did, Bugatti's axles were forged such that the spring passed though a carefully sized opening in the axle, a much more elegant solution requiring fewer parts. He famously described his arch competitor Bentley's cars as "the world's fastest lorries" for focusing on durability. According to Bugatti, "weight was the enemy".
Prototypes 19001901 Type 2 1903 Type 5 1908 Type 10 Petit Pur Sang 1925 Type 36 1929 Type 40 1929 Type 41 19291930 Type 45/47 Type 56 (electric car) 1939 Type 64 (coupe) 1943/1947 Type 73C Racing Cars 19101914 Type 13/Type 15/17/22 1912 Type 16 Bb 19221926 Type 29 Cigare 1923 Type 32 Tank 19241930 Type 35/35A/35B/35T/35C/37/39 Grand Prix 19271930 Type 52 (electric racer for children) 19361939 Type 57G "Tank" 19371939 Type 50B 19311936 Type 53 19311936 Type 51/51A/54GP/59 19551956 Type 251 Road Cars 1910 Type 13[2] 19121914 Type 18 19131914 Type 23/Brescia Tourer (roadster) 19221934 Type 30/38/40/43/44/49 (touring car) 19271933 Type 41 Royale 19291939 Type 46/50/50T (touring car) 19321935 Type 55 (roadster) 19341940 Type 57/57S/Type 57SC (touring car) 19511956 Type 101 (coupe) 19571962 Type 252 (2seater sports convertible)

Racing success Bugatti cars were extremely successful in racing, with many thousands of victories in just a few decades. The little Bugatti Type 10 swept the top four positions at its first race. The 1924 Bugatti Type 35 is probably the most successful racing car of all time, with over 2,000 wins. Bugattis swept to victory in the Targa Florio for five years straight from 1925 through 1929. Louis Chiron held the most podiums in Bugatti cars, and the 21st century Bugatti Company remembered him with a concept car named in his honor. But it was the final racing success at Le Mans that is most rememberedJean-Pierre Wimille and Pierre Veyron won the 1939 race with just one car and meager resources.

Aviation The Bugatti 100P In the 1930s, Ettore Bugatti got involved in the creation of a racer airplane, hoping to beat the Germans in the Deutsch de la Meurthe prize. This would be the Bugatti 100P,[3][4] which never flew. It was designed by Belgian engineer Louis de Monge who had already applied Bugatti Brescia engines in his "Type 7.5" lifting body. THE END OF THE LEAGACY His son, Jean Bugatti, was killed on 11 August 1939 at the age of 30, while testing a Type 57 tank-bodied race car near the Molsheim factory. Subsequently the company's fortunes began to decline. World War II ruined the factory in Molsheim, and the company lost control of the property. During the war, Bugatti planned a new factory at Levallois in the northwestern suburbs of Paris and designed a series of new cars, including the Type 73 road car and Type 73C single seater racing car (5 built). After World War II, a 375 cc supercharged car was canceled when Ettore Bugatti died on 21 August 1947. The business underwent a lingering demise, making its last appearance as a business in its own right at a Paris Motor Show in October 1952.

The company attempted a comeback under Roland Bugatti in the mid-1950s with the mid-engined Type 251 race car. Designed with help from Alfa Romeo, Ferrari, and Maserati designer Gioacchino Colombo, the car failed to perform to expectations, and the company's attempts at automobile production were halted. In the 1960s, Virgil Exner designed a Bugatti as part of his "Revival Cars" project. A show version of this car was actually built by Ghia using the last Bugatti Type 101 chassis, and was shown at the 1965 Turin Motor Show. Finance was not forthcoming, and Exner then turned his attention to a revival of Stutz. Bugatti continued manufacturing airplane parts and was sold to Hispano-Suiza (another auto maker turned aircraft supplier) in 1963. Snecma took over in 1968, later acquiring Messier. The two were merged into Messier-Bugatti in 1977. On 2 January 2009, it was revealed that a rare 1937 Bugatti Type 57S Atalante had been found in the garage of a deceased surgeon in England. Only 17 of this model were made, all by hand.

On 10 July 2009, a 1925 Bugatti Brescia Type 22 which had lain at the bottom of Lake Maggiore on the border of Switzerland and Italy for 75 years was lifted out of the water. The Mullin Museum in Oxnard, California bought it at auction for $351,343 at Bonham's Retromobile sale in Paris in 2010. Bugatti brand used afterwards Bugatti Automobili SpA

Bugatti EB110 (1996) Italian entrepreneur Romano Artioli acquired the Bugatti name in 1987, and established Bugatti Automobili SpA. The new company built a factory designed by the architect Giampaolo Benedini in Campogalliano, Italy, a town near Modena, home to other performance-car manufacturers De Tomaso, Ferrari, Pagani and Maserati.

By 1989 the plans for the new Bugatti revival were presented by Paolo Stanzani and Marcello Gandini, famous designers of the Lamborghini Miura and Countach. The first completed car was labelled the Bugatti EB110 GT, advertised as the most technically advanced sports car ever produced. From 1992 through 1994 famed racing car designer Mauro Forghieri was technical director. On 27 August 1993, through his holding company, ACBN Holdings S.A. of Luxembourg, Romano Artioli purchased the Lotus car company from General Motors. The acquisition brought together two of the greatest historical names in automotive racing, and plans were made for listing the company's shares on international stock exchanges. Bugatti also presented in 1993 the prototype of a large saloon called the EB112. By the time the EB110 came to market the North American and European economies were in recession, and operations ceased in September 1995. A model specific to the United States market called the "Bugatti America" was in the preparatory stages when the company closed. Bugatti's liquidators sold Lotus to Proton of Malaysia. In 1997 German manufacturer Dauer Racing bought the EB110 license and remaining parts stock to Bugatti in order to produce five more EB110 SS units, although they were greatly refined by Dauer. The factory was later sold to a furniture-making company, which also collapsed before they were able to move in, leaving the building unoccupied. The company Dauer Sportwagen stopped producing Supercars. All original Bugatti parts especially the high performance parts of the EB110SS and the equipment were bought in 2011 by the company Toscana-Motors GmbH (Kaiserslautern/Germany). Perhaps the most famous Bugatti EB110 owner was racing driver Michael Schumacher, seven-time Formula One World Champion, who bought the EB110 in 1994 while racing for the Benetton team. In 2003 Schumacher sold the car which had been repaired after a severe crash the year he bought itto Modena Motorsport, a Ferrari service and race preparation garage in Germany.

Bugatti Automobiles

Veyron 16.4. Volkswagen AG purchased the rights to produce cars under the Bugatti marque in 1998. They commissioned ItalDesign to produce the Bugatti EB118 concept, a touring saloon (sedan), which featured a 408 kilowatts (555 PS; 547 bhp)[citation needed], and the first W-configuration 16-cylinder engine in any passenger vehicle, at the Paris Auto Show. In 1999, the Bugatti EB 218 concept was introduced at the Geneva Auto Show; later that year the Bugatti 18/3 Chiron was introduced at the Frankfurt Motor Show (IAA). At the Tokyo Motor Show, the EB 218 reappeared, and the Bugatti EB 16.4 Veyron was presented as the first incarnation of what was to be a production road car. Bugatti Veyron The Bugatti Veyron EB 16.4 is a mid-engined grand touring car. The Super Sport version is the fastest road-legal car in the world, with a top speed of 431.07 km/h (267.85 mph). The original version has a top speed of 408.00 km/h (253.52 mph).[5] It was named Car of the Decade (20002009) by the BBC television programme Top Gear. Designed and developed by the German Volkswagen Group and produced by Bugatti Automobiles SAS at their headquarters in Chteau Saint Jean in Molsheim (Alsace, France), the Veyron's chief designer was Hartmut Warkuss, and the exterior was designed by Jozef Kaba of Volkswagen, with much of the engineering work being conducted under the guidance of former Peterbilt engineer and now Bugatti Engineering chief Wolfgang Schreiber. A number of special variants have been produced, including two targa tops. In December 2010, Bugatti began offering prospective buyers the ability to customize exterior and interiors colours by using the Veyron 16.4 Configurator application on the marquees official website.

Name origin The car is named after French racing driver Pierre Veyron, who won the 24 hours of Le Mans in 1939 while racing for the original Bugatti Company. The 16.4 refers to 16 cylinders and 4 turbochargers Specifications and performance The Veyron features a 16 cylinder engine, equivalent to two narrow-angle V8 engines mated in a W configuration. Each cylinder has four valves for a total of sixty four, but the narrow staggered V8 configuration allows two overhead camshafts to drive two banks of cylinders so only four camshafts are needed. The engine is fed by four bi-turbochargers and displaces 7,993 cubic centimetres (487.8 cu in), with a square 86 by 86 mm (3.4 by 3.4 in) bore and stroke. The transmission is a dual-clutch direct-shift gearbox computer-controlled automatic with seven gear ratios, with magnesium paddles behind the steering wheel and a shift time of less than 150 milliseconds, built by Ricardo of England rather than Borg-Warner, who designed the six speed DSG used in the mainstream Volkswagen Group marques. The Veyron can be driven in either semi- or fully automatic mode. A replacement transmission for the Veyron costs just over 120,000. It also has permanent four wheel drive using the Haldex Traction system. It uses special Michelin PAX run flat tires, designed specifically to accommodate the Veyron's top speed, which reportedly cost 25,000 per set The tyres can be removed from the rims only in France, a service which reportedly costs 70,000. Curb weight is 2,034.8 kilograms (4,486 lb) This gives the car a power to weight ratio, according to Volkswagen Group's figures, of 446.3 metric horsepower (328 kW; 440 bhp) per ton. The car's wheelbase is 2,710 mm (106.7 in). Overall length is 4,462 mm (175.7 in), width 1,998 mm (78.7 in) and height 1,204 mm (47.4 in). The Bugatti Veyron has a total of ten radiators. 3 heat exchangers for the air-to-liquid intercoolers. 3 engine radiators.

1 for the air conditioning system. 1 transmission oil radiator. 1 differential oil radiator. 1 engine oil radiator. It has a drag coefficient of 0.41 (normal condition) and 0.36 (after lowering to the ground), and a frontal area of 2.07 square metres (22.3 sq ft). This gives it a drag area the combination of drag coefficient and frontal area, represented as CdA of 0.74 m2 (8.0 sq ft). Engine output According to Volkswagen Group and certified by TV Sddeutschland, the final production Veyron engine produces 1,001 metric horsepower (736 kW; 987 bhp) of motive power, and generates 1,250 newton metres (922 ftlbf) of torque. The nominal figure has been stated by Bugatti officials to be conservative, with the real total being 1,020 metric horsepower (750 kW; 1,006 bhp) or more. Super Sport edition The Veyron Super Sport features an engine power increase from the standard 1,001 metric horsepower (736 kW; 987 bhp) to 1,200 metric horsepower (883 kW; 1,184 bhp) and torque of 1,500 Nm (1,100 ftlbf) and a revised aerodynamic package.It was shown publicly for the first time at the Pebble Beach Concours d'Elegance in August 2010. Bugatti's official test driver Pierre Henri Raphanel drove the Super Sport version of the Veyron on Volkswagen's Ehra-Lessien high-speed oval to establish the car's top speed. With representatives of the Guinness Book of Records and German Technical Inspection Agency (TV) on hand, Raphanel made passes around the big oval in both directions achieving an average maximum speed of 431.072 km/h (267.856 mph). Once produced for sale, the first five Super Sports will sport the same black and orange finish as the first production car, which was used to set the speed record, and all production models will be electronically limited to 415 km/h (258 mph) to protect the tyres.

Top speed German inspection officials recorded an average top speed of the original version of 408.47 km/h (253.81 mph). During test sessions on the Ehra-Lessien test track on 19 April 2005. This top speed was verified by James May on Top Gear in November 2006, again at Volkswagen Group's private Ehra-Lessien test track. Jeremy Clarkson, driving a Veyron from Italy to London, noted that at top speed the engine consumes 45,000 litres (9,900 imp gal) of air per minute (as much as a human breathes in four days). The Veyron has the highest top speed of any street legal production car. Once back in the Top Gear studio, James was asked by co-presenter Jeremy Clarkson what the Veyron felt like to drive at 407 km/h (253 mph), May replied that it was "totally undramatic", and very stable at speed. It only wobbled slightly as the air brake moved in the vertical position to slow the car down at lower speeds. On 4 July 2010, Bugatti's official test driver Pierre Henri Raphanel piloted the Super Sport edition and was clocked at an average of 431.072 km/h (267.856 mph) on the same track, taking back the title from the SSC Ultimate Aero TT as the fastest production vehicle of all time. The 431.072 km/h mark was reached by averaging the Super Sport's two test runs, the first topping out at 427.93 km/h (265.90 mph) and the second at 434.20 km/h (269.80 mph). The record run was certified by the German government and the Guinness Book of World Records. The car's everyday top speed is listed at 350 km/h (220 mph). When the car reaches 220 km/h (140 mph), hydraulics lower the car until it has a ground clearance of about 9 cm (3.5 in). At the same time, the wing and spoiler deploy. In this handling mode the wing provides 3,425 newtons (770 lbf) of downforce, holding the car to the road. For top speed mode the driver must, while at rest, toggle a special top speed key to the left of the driver's seat. A checklist then establishes whether the car and its driver are ready to attempt to reach 407 km/h (253 mph). If so, the rear spoiler retracts, the front air diffusers shut, and normal 12.5 cm (4.9 in) ground clearance drops to 6.5 cm (2.6 in).

Braking The Veyron's brakes use cross drilled, radially vented carbon fibre reinforced silicon carbide (C/SiC) composite discs, manufactured by SGL Carbon, which have a much greater resistance to brake fade when compared with conventional cast iron discs. The lightweight aluminium alloy monobloc brake calipers are made by AP Racing; the fronts have eight titanium pistons and the rear calipers have six pistons. Bugatti claims maximum deceleration of 1.3 g's on road tyres. As an added safety feature, in the event of brake failure, an anti-lock braking system (ABS) has also been installed on the handbrake. Prototypes have been subjected to repeated 1.0 g braking from 312 km/h (194 mph) to 80 km/h (50 mph) without fade. With the car's acceleration from 80 km/h (50 mph) to 312 km/h (194 mph), that test can be performed every 22 seconds. At speeds above 200 km/h (120 mph), the rear wing also acts as an airbrake, snapping to a 55 angle in 0.4 seconds once brakes are applied, providing an additional 0.68 g (6.66 m/s2) of deceleration (equivalent to the stopping power of an ordinary hatchback). Bugatti claims the Veyron will break from 400 km/h (250 mph) to a standstill in less than 10 seconds, though distance covered in this time will be half of a kilometer (third of a mile).

Technical Analysis: Anatomy of a Supercar - Road Test Data The road to 250 mph is a technically fascinating one. By Gordon Murray / Photos by Stephane Foulon

The Bugatti Veyron 16.4 is no doubt the result of many thousands of engineering hours, and certain elements of the car are indeed cutting-edge concept and design. The two main areas that demonstrate new technology are the engine and the transmission. The engine itself is an engineering wonder and includes some interesting new antiknock sensing. The gearbox and gear-change system are right up to date utilizing dual-wet clutches and twin layshafts. In my opinion, this is the only way to go to attain quick, smooth gearchanges for a vehicle without a manual clutch. Most semiautomatic systems are violent in their application and not very satisfying from a driver's point of view. The Veyron gearchange is fast and extremely well applied. The complete powertrain is a great showcase for the parent company, Volkswagen AG. Another area where the car is pushing boundaries is with its electronic control systems and, in particular, their application. I drove the Bugatti on the road and on the track, which demonstrated just how seamlessly the chassis and powertrain functions have been sewn together.

The chassis/body structure is hybrid like the last Bugatti (EB110) with carbon fiber used for the primary structure and aluminum alloy for the body and front crash structure. In this respect, the all-carbon McLaren F1 and the RTM (Resin Transfer Molding) carbon Mercedes-Benz SLR McLaren are, in fact, more advanced. Carbon-ceramic brakes are used as with the Porsche GT and the SLR. The aerodynamics is interesting and complex. The design and development have been directed at problem-solving in the areas of cooling and vehicle stability. At such high speeds, the basic shape of the Veyron will generate a lot of lift. Add to this a large frontal area and 10 radiators and heat exchangers, and suddenly here's where the 1001 hp [metric horsepower] dissipates at 250 mph! The CDA figure [drag coefficient x frontal area] is at the high end of the scale for rear-engine sports cars. At these sorts of speeds, a massive amount (often three or four times the net figure) of downforce has to be generated to overcome the basic lift in order to achieve the target figure for net downforce. The Veyron is a full ground-effect vehicle like the McLaren F1 and Ferrari Enzo. The downforce increases as a square of the speed, so there are large forces to design for at speeds approaching V max [top speed] these forces eat into available suspension travel and can cause high-speed stability problems.

Compounding this problem is that ground-effect cars are notoriously sensitive to ride height and pitch changes. I solved these problems on the F1 by having just enough downforce for high-speed stability and by giving the driver a manual control over the rear wing for a 50-percent increase in downforce at lower speeds. The F1 is also designed with an automatic "air brake," which deploys when the chassis ECU detects a certain combination of speed and deceleration. The air brake increases the CD but more important, interacts with the ground-effect forces by increasing the tail vortex and base suction, which results in an increase in downforce of 100 percent and a rearward movement of the aerodynamic center of pressure of about 4 ft., which helps negate the pitch problem. The Veyron uses the McLaren air brake system but also has a hydraulic ride-height control system, which optimizes the ride heights and chassis incidence for different speeds and

loads. The F1 goes a little further with automatic brake cooling and fan-assisted boundary control for the rear diffuser.

When designing a car, I like to do a large amount of aerodynamic "block studies" this being the basic size of the car with a cabin shape derived from engineering and packaging studies. The block model incorporates representative internal airflow for cooling. This process determines air entry and exit holes, along with the basic shape of the car so styling can begin. As the drag increases as a square of the speed, the power requirement increases as a cube of the speed because the power itself is speed-dependent. The Veyron because of its high CDA figure and huge cooling drag needs 1001 hp to go 12 mph faster than a McLaren F1 producing 627 hp. To help understand the problem of starting a car program from a weak point aerodynamically, we do some calculations: A turbocharged F1 producing 1001 hp would achieve 281 mph assuming the same drivetrain efficiency. Another way of looking at this equation is that an F1 would need "only" 740 hp to reach the Bugatti's top speed. All this demonstrates just what an uphill struggle the Bugatti team faced to achieve their targets. Very high top speeds in road cars produce some other very challenging problems. Some are small, such as keeping the windshield wipers attached to the glass, preventing the centrifugal force from opening the tire inflation valves and making the side mirror mounts torsionally stiff enough not to rotate at V max. Then there are much more serious high-speed problems such as a partially open side window being sucked out from the very low local pressure caused by the air accelerating around the A-pillar. Tire designers can design for very heavy vehicles or very high speeds but a combination of the two is a massive challenge. A Bugatti Veyron fully loaded and with aerodynamic load is in the order of 2 tons at 250 mph!

Weight saving should be by design and not a post process. Weight is the car designer's biggest enemy. It works against you in every single aspect of vehicle dynamics. Power-to-weight ratio is one of the most misunderstood figures in the auto-motive world. Achieving a good power-to-weight figure by applying huge horsepower to a heavy car is in no way the same thing as achieving the same ratio with a very light car. For all its 1001 hp, the Veyron falls short of a McLaren F1's power-to-weight figure. For me, car design is packaging. To create something truly forward-thinking, a designer has to challenge the accepted major component placement in an automobile. Styling innovation becomes more accessible when the packaging is innovative. With the F1, we set out to design the best driver's car we could, and by being innovative with componentry placement, we squeezed three occupants, a V12, 90 liters of fuel and good luggage space into a car the same size as a Porsche Cayman. The restrictions on styling and innovations are apparent in the Veyron the all-wheel drive and power targets must have made the designer's life a nightmare. Although the Bugatti is quite short, it is very wide and suffers from most of the rear mid-engine problems, such as high cowl height, pedal offsets, no luggage space and poor three-quarter rear vieI have a "real-world" checklist when designing road cars: 1) size or perceived size; is the car intimidating to drive? 2) ergonomics; primary and secondary controls, pedals; 3) luggage capacity, cabin storage; 4) driveability, slow traffic engine characteristics, overtaking; 5) ride and handling; 6) ease of parking. A road car should be designed with a checkmark against all six. In summing up the Bugatti Veyron, had I not driven it, I would have great difficulty in deciding just what it stands for and where it fits in. To be absolutely fair, the Veyron team did not set out to challenge the McLaren F1, Enzo or Porsche GT as the ultimate driving machine. This it certainly doesn't do at two tons with turbo lag. It also falls short of the Ferrari 612 Scaglietti and the Mercedes SLR McLaren for high-performance touring because of the outward vision problems and lack of luggage space. Where it absolutely succeeds is as a massive technical

achievement a statement for VW AG. And it will be guaranteed a place in automotive history because of the performance figures. On paper, its nearest relative by specification is its brother, the Bugatti EB110 multi-cylinder turbo engine, hybrid construction, awd and impractical on the road. It is much nearer the SLR for totally accessible performance for almost everyone, thanks to the electronics but without the ergonomics and luggage space. I have a lot of admiration for the perseverance of Bugatti president, Dr. Thomas Bscher, and his technical team for delivering the vehicle program and creating a unique piece of automotive history. Styling Analysis: In the World of the Hyper-Exotic Designing a rear mid-engine supercar is never a simple task and a car with 1001 hp [metric horsepower] multiplies the normal design and development problems by a large factor. The Veyron's design team must be applauded because the starting point was so wrong. Arbitrary targets of 1000 hp and 250 mph and 0-60-mph in under 3 seconds were set at the very beginning of the program. But worse still, a styling model was shown and accepted! This is a bad starting point for any car, but for a high-performance car, it's a disaster.

The Veyron team has done wonders to get where it has today. I can identify with them to a certain degree because with our SLR program, we were also given a "show car" as a starting point the exception was that we had well researched targets for market positioning, a performance envelope and, most important, an agreed definition of what the car was trying to be. I've probably been a little spoiled in my 40 years of car design where the SLR apart every project was absolutely focused with targets and vehicle character totally clear before a model or prototype was even begun. (Nothing in the automotive industry has its function and targets more clearly defined than a Formula 1 car.) During the McLaren F1 road car program, styling was not started until all the major technical targets were set and all the engineering problems were solved, along with packaging and basic aerodynamic shape

The styling of the Veyron is growing on me and certainly works much better in the metal. I'm thankful that the stylist was not tempted by the current trend of the evermore complicated "melting fruit" look! I really like the top engine intakes, which are works of art in their own right. The styling is a wonderful mlange of classic curves and mechanical edges and elements this should ensure that the car will still look good years from now, and therefore have a chance of becoming a future classic. The extreme rear of the Veyron has some curves good enough to stroke. The rear end is let down only by the "square" exhaust; an exhaust pipe should be exactly what it says! Wheel design is elegant and technical and echoes past Bugattis. The interior is a strange mixture of simple sports car and over-the-top luxury. The detailing and quality are both fantastic, and the tactile side works very well with a heavyweight feel to the switchgear. Ergonomics has come second place to style with several problems with outward vision and controls. Most supercars fit into three categories: 1) real world, designed to be used and enjoyed on normal roads; 2) track cars; 3) collector cars, i.e., engineering showoffs. Some supercars fit into two or even three of these categories. One final point is that I have always felt a little responsible for starting this lunatic chase for top speed with the McLaren F1 (even though top speed was never one of our targets!), and the Bugatti Veyron should put an end to this nonsense and let the designers get on with the job of designing good fun, efficient sports cars.

Bugatti Veyron
Utterly, stunningly, jaw droppingly brilliant

J e r e m y

C l a r k s o n

When you push a car past 180mph, the world starts to get awfully fizzy and a little bit frightening. When you go past 200mph it actually becomes blurred. Almost like youre trapped in an early Queen pop video. At this sort of speed the tyres and the suspension are reacting to events that happened some time ago, and they have not finished reacting before theyre being asked to do something else. The result is a terrifying vibration that rattles your optical nerves, causing double vision. This is not good when youre covering 300ft a second. Happily, stopping distances become irrelevant because you wont see the obstacle in the first place. By the time you know it was there, youll have gone through the windscreen, through the Pearly Gates and be half way across Gods breakfast table. It has always been thus. When Louis Rigolly broke the 100mph barrier in his Gobron in 1904, the vibration would have been terrifying. And I dare say that driving an E-type at 150mph in 1966 must have been a bit sporty as well. But once you go past 200mph it isnt just the suspension and the tyres you have to worry about. The biggest problem is the air. At 100mph its relaxed. At 150mph its a breeze. But at 200mph it has sufficient power to lift an 800,000lb jumbo jet off the ground. A 200mph gust of wind is strong enough to knock down an entire city. So getting a car to behave itself in

conditions

like

these

is

tough.

At 200mph you can feel the front of the car getting light as it starts to lift. As a result you start to lose your steering, so you arent even able to steer round whatever it is you cant see because of the vibrations. Make no mistake, 200mph is at the limit of what man can do right now. Which is why the new Bugatti Veyron is worthy of some industrial strength genuflection. Because it can do 252mph. And thats just mad 252mph means that in straight and level flight this car is as near as makes no difference as fast as a Hawker Hurricane. You might point out at this juncture that the McLaren F1 could top 240mph, but at that speed it was pretty much out of control. And anyway it really isnt in the same league as the Bugatti. In a drag race you could let the McLaren get to 120mph before setting off in the Veyron. And youd still get to 200mph first. The Bugatti is way, way faster than anything else the roads have seen. Of course, at 810,000, it is also jolly expensive, but when you look at the history of its development youll discover its rather more than just a car . . . It all started when Ferdinand Pich, the swivel-eyed former boss of Volkswagen, bought Bugatti and had someone design a concept car. This, he said, is what the next Bugatti will look like. And then, without consulting anyone, he went on. And it vill have an engine that develops 1000 horsepower and it vill be capable of 400kph. His engineers were horrified. But they set to work anyway, mating two Audi V8s to create an 8 litre W16. Which was then garnished with four turbochargers. Needless to say, the end result produced about as much power as the earths core, which is fine. But somehow the giant had to be cooled, which is why the Veyron has no engine cover and why it has 10 count them 10 radiators. Then things got tricky because the power had to be harnessed. For this, VW went to Ricardo, a British company that makes gearboxes for various Formula One teams. God, it was hard, said one of the engineers I know vaguely. The gearbox

in an F1 car only has to last a few hours. Volkswagen wanted the Veyrons to last 10 or 20 years. And remember, the Bugatti is a damn sight more powerful than any F1 car. The result, a seven-speed double-clutch flappy paddle affair, took a team of 50 engineers five years to perfect. With this done, the Veyron was shipped to Saubers F1 wind tunnel where it quickly became apparent that while the magic 1000bhp figure had been achieved, they were miles off the target top speed of 400kph (248mph). The body of the car just wasn't aerodynamic enough, and Volkswagen wouldnt let them change the basic shape to get round the problem. The bods at Sauber threw up their hands, saying they only had experience of aerodynamics up to maybe 360kph, which is the effective top speed in Formula One. Beyond this point Bugatti was on its own. Somehow they had to find an extra 30kph, and there was no point in looking to the engine for answers because each extra 1kph increase in speed requires an extra 8bhp from the power plant. An extra 30kph then would need an extra 240bhp. That was not possible. The extra speed had to come from changing small things on the body. They started by fitting smaller door mirrors, which upped the top speed a bit but at too high a price. It turned out that the bigger ones had been keeping the nose of the car on the ground. Without them the stability was gone. In other words, the door mirrors were generating downforce. That gives you an idea of how much of a bastard the air can be at this speed. After some public failures, fires and accidents, and one chief being fired, they hit on the idea of a car that automatically changes shape depending on what speed youre going. At 137mph, the nose of the car is lowered by 2in and the big rear spoiler slides into the slipstream. The effect is profound. You can feel the back of the car being pressed into the road. However, with the spoiler in place the drag is so great youre limited to just 231mph. To go faster than that you have to stop and insert your ignition key

in a slot on the floor. This lowers the whole car still further and locks the big back wing down. Now you have reduced downforce, which means you wont be going round any corners, but you have a clean shape. And that means you can top 400kph. Thats 370ft a second. You might want to ponder that for a moment. Covering the length of a football pitch, in a second, in a car. And then you might want to think about the braking system. A VW Polo will generate 0.6g if you stamp on the middle pedal hard. You get that from the air brake alone on a Veyron. Factor in the carbon ceramic discs and you will pull up from 250mph in just 10sec. Sounds good, but in those 10sec youll have covered a third of a mile. Thats five football pitches to stop. I didnt care. On a recent drive across Europe I desperately wanted to reach the top speed but I ran out of road when the needle hit 240mph. Where, astonishingly, it felt planted. Totally and utterly rock steady. It felt sublime. Not quiet, though. The engine sounds like Victorian plumbing it looks like Victorian plumbing as well, to be honest and the roar from the tyres was biblical. But it still felt brilliant. Utterly, stunningly, mind blowingly, jaw droppingly brilliant. And then I reached the Alps where, unbelievably, it got better. I expected this road rocket to be absolutely useless in the bends but it felt like a big Lotus Elise. Occasionally, if I accelerated hard in a tight corner, it behaved strangely as the four-wheel-drive system decided which axle would be best equipped to deal with the wave of power. I wont say its a nasty feel or dangerous. Just weird, in the same way that the duck-billed platypus is weird. You learn to raise an eyebrow at whats only a foible, and then, as the road straightens out, steady yourself for Prince Alberts boiler to gird its loins and play havoc with the space-time continuum. No, really, you come round a bend, see what appears to be miles and miles of dead straight road, bury your foot in the carpet and with a big asthmatic wheeze, bang, youre instantly at the next bend, with your eyebrow raised again. From behind the wheel of a Veyron, France is the size of a small coconut. I cannot tell you how fast I crossed it the other day. Because you simply

wouldnt believe me. I also cannot tell you how good this car is. I just dont have the vocabulary. I just end up stammering and dribbling and talking wide-eyed nonsense. And everyone thinks Im on drugs. This car cannot be judged in the same way that we judge other cars. It meets drive-by noise and emission regulations and it can be driven by someone whose only qualification is an ability to reverse round corners and do an emergency stop. So technically it is a car. And yet it just isnt. Other cars are small guesthouses on the front at Brighton and the Bugatti is the Burj Al Arab. It makes even the Enzo and the Porsche Carrera GT feel slow and pointless. It is a triumph for lunacy over common sense, a triumph for man over nature and a triumph for Volkswagen over absolutely every other car maker in the world. VITAL STATISTICS Model Bugatti Veyron 16.4 Engine 7993cc, 16 cylinders in a W Power 1001bhp @ 6000rpm Torque 922 lb ft @ 2200rpm Transmission 7-speed DSG, manual and auto Fuel 11.7mpg (combined) CO2 574g/km Acceleration 0-62mph: 2.5sec Top speed 253mph Price 810,345 Rating Five stars Verdict Deserves 12 stars. Simply as good and as fast as it gets

CONCLUSION

SWOT ANALYSIS

 Strengths 1) VW has boosted quality more than any other carmaker in the past five years, cutting defects by 60%. 2) Their "family culture", no leading brand. 3) The VW group has the flagship of some of the biggest and most trustworthy brands in the automobile industry. 4) Strong Procurement department with Sustainability in Supplier Relationships. 5) Strong CSR activities bringing together wealth creation and value orientation. 6) BUGATTI still remains the ultimate luxury sports car of the world.  Weaknesses 1) VW still trails Toyota, Mercedes, Nissan, and Honda in overall quality. 2) VW's cost of capital is relatively higher than Daimler's. 3) VW bungled its communications with investors. 4) It was late in inculcating the policies of Lean and JIT approach that Toyota was using for many years. 5) Bad publicity due to being sued by GM.

 Opportunities 1) Growth potential in the American and Asian markets. 2) Due to its very good results on the stock exchange, VW may expect to attract numerous new investors 3) Potential decrease in Cost with their Production Strategy.  Threats 1) A softening in auto sales in Europe and South America. 2) Risk of self-cannibalization between VW's brands, like top of the line VW's models and bottom of the line Audi's. 3) Risk of brand dilution owing to confusion between the VW Passat and the Audi A4. 4) Ever increasing fuel costs. BUGATTI even though is the best and greatest ultimate luxury sports car of the world, many experts claim it to be just a show off machine. They claim VW of not being focused to producing a good sports car and rather running behind speed and making records (BUGATTI IS THE FASTEST PRODUCTION SPORTS CAR OF THE WORLD). BUGATTI is just a mean luxury machine which is restricted to a very few affluent people and is far out of reach of a common man.

SUGESSIONS
y VOLKSWAGEN SHOULD FOCUS ON ITS INTERNAL BRANDING STRUCTURE. y VOLKSWAGEN SHOULD AIM AT NOT COMPETING AMONG ITS OWN BRANDS AND RATHER FOCUS ON ITS RIVALS. y BUGATTI SHOULD GO TO ITS ETHICS OF LUXURY, COMFORT AND EXELENCE RATHER THAN RUNNING AFTER SPEED.

APENDIX

1. WILL VOLKSWAGEN BE ABLE TO CARVE A NEICH AMONG INDIAN CUSTOMERS WITH ITS DIVERSE PRODUCTS AND OFFERINGS?
SURVEY
YES NO MAY BE

2. HOW MANY PEOPLE ASPIRE TO BUY A BUGATTI, IN INDIA?

SURVEY

YES NO ITS NOT FOR INDIAN ROADS 4th Qtr

BIBLOGRAPHY 1. WIKIPEDIA 2. GOOGLE 3. VOLKSWAGEN.COM 4. VARIOUS WEBSITES. AUTOMOBILE BLOGS AND