Matthias Müller warns that crisis has undermined the core values of the brand; development of non-mainstream models under threat; Bugatti's future uncertain
7 October 2015

The future of Volkswagen's Bugatti brand is under threat, as new VW boss Matthias Müller has told German media he is looking at cutting costs and model development in the wake of the company's emissions scandal.

Autocar understands that while investment in mainstream VW models will continue, development of non-core models, including the next-generation Phaeton and Bugatti's Veyron sucessor, could be halted.

Yesterday, Müller addressed workers at the company's Wolfsburg HQ, telling them: “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."

Müller also confirmed that technicians are close to revealing a technical solution to the defeat devices that were employed on cars fitted with the EA189 diesel engine. He confirmed that some cars will require only a software upgrade, whereas others will also require hardware modifications. Unconfirmed reports suggest that the biggest changes will be required on 1.6-litre versions of the engine, although VW has declined to comment. The first recalls of cars affected by the scandal are due to start in January, with VW hoping to have fixed all affected vehicles by the end of next year.

Müller added, "Our most important task will be to regain lost confidence with our customers, partners, investors and the general public. The first step in this direction will be a fast and relentless examination and explanation. 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. But in this situation, in which we are dealing with four brands and many models, care is more important than speed.

"The technical solutions to the problems are in sight. By contrast, the business and financial consequences are not yet foreseeable."

VW has already set aside 6.5bn euros (£4.7bn) to cover the costs of the scandal, but many industry commentators believe that figure will rise, possibly to a figure three times higher. Since the scandal broke, VW's share price has fallen by almost half its value.

Read more on the Volkswagen emissions scandal:

Six things the firm could cut

VW to recall affected cars in January

Blog - navel gazing at Volkswagen

Blog - Keeping up with pollution laws is not always easy for car makers

Blog - How Volkswagen can survive its emissions scandal

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Comments
24

6 October 2015

At the risk of sounding like a socialist, the workers look set to pay the price for the executive's criminality.

6 October 2015
Bullfinch wrote:

At the risk of sounding like a socialist, the workers look set to pay the price for the executive's criminality.

Corbyn wrote:

It doesn’t have to be unfair, poverty isn’t inevitable, things can, and they will, change.

You heard the man. So fire up that money printer and let's nationalise VW. Finally, the people's car - owned by the people not Tories. German Tories, that is. Actually do they have Tories in Germany?

6 October 2015
Bullfinch wrote:

At the risk of sounding like a socialist, the workers look set to pay the price for the executive's criminality.

Got it in one. Workers, customers, the authorities, the general public... the list of people Volkswagen has shown absolutely no respect to grows and grows..

6 October 2015

"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."

6 October 2015

This time next year they're be selling just as many cars as ever. Few lines of dodgey software code making about 10% difference, small fry in the companies history

 

Hydrogen cars just went POP

6 October 2015
xxxx wrote:

This time next year they're be selling just as many cars as ever. Few lines of dodgey software code making about 10% difference, small fry in the companies history

What an odd thing to say!......so you couldn't give a monkeys about what happens to the customer, company workers, the authorities etc etc?

You must be a Tory (Re earlier posts), care-less VW Group owner, VW Group dealer or all of the listed (apologies in advance if any of that offends)!

6 October 2015
danielcoote wrote:
xxxx wrote:

This time next year they're be selling just as many cars as ever. Few lines of dodgey software code making about 10% difference, small fry in the companies history

What an odd thing to say!......so you couldn't give a monkeys about what happens to the customer, company workers, the authorities etc etc?

You must be a Tory (Re earlier posts), care-less VW Group owner, VW Group dealer or all of the listed (apologies in advance if any of that offends)!

You sad person where did I say I didn't care, I said this time they're be selling as many cars as this year. As to all your other rash comments about me being a VW owner etc you're wrong again and again

 

Hydrogen cars just went POP

6 October 2015
xxxx wrote:
danielcoote wrote:
xxxx wrote:

This time next year they're be selling just as many cars as ever. Few lines of dodgey software code making about 10% difference, small fry in the companies history

What an odd thing to say!......so you couldn't give a monkeys about what happens to the customer, company workers, the authorities etc etc?

You must be a Tory (Re earlier posts), care-less VW Group owner, VW Group dealer or all of the listed (apologies in advance if any of that offends)!

You sad person where did I say I didn't care, I said this time they're be selling as many cars as this year. As to all your other rash comments about me being a VW owner etc you're wrong again and again

...perhaps because you wrote it as if you didn't care!? Apologies. Oh, BTW, I'm actually quite a happy person!

6 October 2015
xxxx wrote:

Few lines of dodgey software code making about 10% difference, small fry in the companies history

VWs, it appears, are not the only things with "defeat devices" lurking in their brains.

6 October 2015

The anti-Telsa brigade led by yourself also have a missing part or two

 

Hydrogen cars just went POP

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