PILLAI marketting volkswagen

8/3/2019 PILLAI marketting volkswagen

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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.


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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 othermedium, 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.


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ACKNOWLEDGEMENT

I ARUN RAJ.S.PILLAI, hereby acknowledge the

guidance and motivation provided to me by my professorincharge.

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 inevery 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.


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CERTIFICATE

This is to certify that Mr. ARUN RAJ.S.PILLAI fromSY.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


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EXECUTIVE SUMMARY

This project provides detailed and elaborate informationabout 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 VolkswagenGroup'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 CommercialVehicles.

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-performanceautomobiles by Italian-born Ettore Bugatti. Bugattis were well-known for the beauty of theirdesigns. 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.


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TITLE

VOLKSWAGEN GROUPSBUGATTI.

OBJECTIVES:

yGroup Values

yCustomer Nearness

yTop Performance


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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 ofVolkswagen 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 theBoard of Management ofVolkswagen 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 ofVolkswagen AG comprises 20 members

and conforms to the German Co-determination Act. Dr. Ferdinand K. Pich is the

Chairman of the Supervisory Board ofVolkswagen AG.


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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 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.


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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 manufacturerScania.

Volkswagen means "people's car" in German, where it is pronounced

[flksvaen]. Its current tagline or slogan is Das Auto (in English: TheCar).

Volkswagen was originally founded in 1937 by the Nazi trade union, the German

Labor Front (Deutsche Arbeitsfront). In the early 1930s German auto industry wasstill 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 andmore 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 beingaround 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 designerof the Mercedes 170H, and worked at Steyr for quite some time in the late 1920s.


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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" forHitler.

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 air-

cooled, 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

zurVorbereitung des Deutschen Volkswagens mbH (sometimes abbreviated to

Gezuvor was established by the Deutsche Arbeitsfront. It was later renamed"Volkswagenwerk GmbH" on 16 September 1938.


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A BRIEF JOURNEY THROUGH A LONG HISTORY

When in 1937 the company known as "Gesellschaft zurVorbereitung des

Deutschen Volkswagens mbH" was founded, no one could have guessed that itwould one day be Europe's largest carmaker. The history of the company - with allits trials and tribulations - is first and foremost a story of impressive success. It isthis very company that today company come to know as VOLKSWAGEN.

1937-1945

On May 28th, 1937 the "Gesellschaft zur Vorbereitung des DeutschenVolkswagens 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 forVolkswagenwerk was placed in the hands of the British Military Government.Under the management of Major Ivan Hirst, mass production of the VolkswagenBeetle was started.

1949-1960

On March 8th, 1950 the Type 2 went into production, expanding thecompany'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 VolkswagenCommercial Vehicles brand.


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1960-1980

On February 17th, 1972 Volkswagen broke the world car production record: with15,007,034 units assembled, the Beetle surpassed the legendary mark achieved bythe 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 ofVolkswagenvehicles to go into production. The Passat was built in line with the modularstrategy, 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 wasdesigned for a largely automated assembly process, and in the specially erectedfinal assembly hall, designated Hall 54, robots were deployed for the first time invehicle 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 productionof the Touareg, a luxury-class off-road vehicle, was started, marking theVolkswagen brand's move into an entirely new market segment.

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


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2003 production of the fifth-generation Golf was started, embodying a newdynamism in its design and engineering.

Volkswagens Products and Positioning

Size, Growth Rates, and Main Products


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In 2006, Volkswagen sold 5,192,576 vehicles worldwide, and sales in 2006amounted to 5,192,576 million Euro. Volkswagen is headquartered in Germany,and the European Community (EC) represents by far the largest market forVolkswagens, with sales to EC countries comprising nearly 60% ofVolkswagensglobal sales. Sales in Germany (27%) and Brazil (14%) account for the mostsignificant segments ofVolkswagens total sales. The U.S., Mexico, and Canadaare, respectively, the seventh, thirteenth, and eighteenth largest markets forVolkswagen vehicles, with North Americans purchasing around 6% of allVolkswagens 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 globalperspective.

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 asteady 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, theGolf, the old Beetle (only in Mexico) and the new Beetle. The Jetta isVolkswagen's best seller in the United States.


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MAJOR PRODUCTS

THE MAJORVOLKSWAGEN PRODUCTS INCLUDE.

POLO

BEETLE


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TOUAREG

JETTA


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PASSAT

PHAETON


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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 thesmall, inexpensive automobile with the original Beetle, and soon established aBeetle assembly plant in Westmorland, Pennsylvania. However, with the rise ofJapanese and other Asian manufacturers in the entry-level market during the 1970sand 1980s, Volkswagen saw its market share in North America fall precipitously.Also facing more stringent environmental and safety standards in the US andCanada 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 emergingmarkets (especially Latin America) and

(2) A concentration on the European market as the motor of growth in

innovative product lines. Indeed, the European market dominatesV

olkswagen'sglobal sales. Not only has Volkswagen emerged as a leader in Europe, but in the post-Soviet era, Volkswagen has made considerable inroads in expandingproduction and sales throughout Eastern Europe, partly through its acquisition ofSkoda

Renewed North American Focus

During the 1980s and 1990s growth in VW's European market sharerequired that VW rely on Mexican capacity to meet demand in North America.

This renewed emphasis on Mexican production was also fuelled by recognition ofVW's price sensitivity in the U.S. market due to the depreciation in the dollar. (Atcurrent exchange rates, Mexican production is cost-competitive with production inGermany.) However, the most important aspect of Volkswagen's new strategycenters on the need for a strong presence in North America in the contest overglobal automobile markets. Part of this presence will take the form of imports fromEurope (like the new Golf), but increased production in North America is also


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essential. Accordingly, Volkswagen has raised its level of production in NorthAmerica by 34% in the past two years.

The establishment of a new assembly plant North America will be the most

significant aspect ofVolkswagen strategy in North America for some time to

come. Building this facility will allow Volkswagen to take full advantage of NorthAmerican free trade and to expand its market presence in North America.

Parts Sourcing

Volkswagen has historically relied on a system of global sourcing to supplyparts to its assembly plants. In Mexico this has changed, however, as a direct resultof the domestic content requirements of NAFTA. The purchase of parts fromwithin 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 NorthAmerican parts suppliers will remain an integral part of Volkswagens NorthAmerican 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 ofnew organizational orientations and methods of "just in time" production.Volkswagen has focused resources on its labour training programs, seeking tofacilitate the rotation of work functions amongst employees. This development hasallowed increased flexibility in the production of vehicles by ensuring thatqualified personnel are available to accomplish a variety of tasks within theirrespective production segments. Volkswagen has also focused on reducinginventories through the use of "just in time" production, which has led to thecreation of much closer ties between parts suppliers and assembly plants.

The New Beetle

A good sense of theV

olkswagen's new marketing strategy can be derivedfrom 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", andunlike the entry-level Beetle of the 1960's, the 1999 Beetle is a modern car that ismarketed 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


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sticker price of $15,700 U.S. for the base model, which is priced above the Golfbut below the Jetta.

Fostering an Upscale Image

While the arrival of the new Beetle promises to bring increases in sales ofVolkswagens, the firm is emphasizing its desire to continue to improve sales of itsupscale 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 arival to BMW and Mercedes is particularly important in the U.S., where expandinginto 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 thesevehicles, even as the ad campaign for the new Beetle is launched.

New Supplier Strategy

Purchasing costs represent approximately 60% of the cost of production forVolkswagen cars, with 60-65% of parts coming from outside suppliers. (Of thesesuppliers, 80% produce in Germany, and 15-18% in rest of Europe, with theremainder elsewhere in North America and Asia.)

Volkswagen has begun to include suppliers in the assembly process itself. Bydirectly employing only engineers, managers and supervisors, and requiringsuppliers to employ their own workers in the assembly plant, Volkswagen hopes to

facilitate the development of new components and models. According to this newsupplier strategy, parts suppliers are also expected to shoulder part of the financial

burden of building the assembly plant itself. As a result, Volkswagen expectsunprecedented productivity gains. If it proves effective, Volkswagen will use thestrategy in production in North America and around the world.


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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 andvarious product segments. More options to choose from the segment Volkswagenoperates in. Honda, Toyota (Accord, Civic, Corolla) already capturing bulk of themarket due to its advanced petrol engines. Skoda has been successful mainly

because of its diesel offerings (Octavia, Laura). The D segment Market has beengrowing consistently.

Bargaining power of suppliers

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

Substitutes

Volkswagen does not have substitutes in India currently for its diesel offeringsexcept for the recently launched GM Optra and Hyundai Sonata. But Volkswagen

easily scores over these products due to the brand recognition and loyalty it carriesin 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 Indianmarket.

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


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The Indian subsidiary of German automobile manufacturer, Volkswagen AG(Volkswagen).Volkswagen entered the Indian passenger car market in 2001 bylaunching its car brand - Skoda. In 2007, two of its other brands Audi andVolkswagen, were also launched in India. Volkswagen Group India emphasized onall aspects of marketing mix including product, price, place and promotion. Thecompany offered three brands including Audi, Skoda and Volkswagen thattogether comprised of 15 different models as of late 2009.

Volkswagen Group India mainly catered to the luxury segment of the Indian carmarket. The company had established presence in India through separatedistribution channels for each of its brands. In its initial years, Volkswagen GroupIndia primarily used the print media to promote its products. However, consideringthe growth potential of India's automobile market, the company started using

electronic, digital and out of home media along with print media. In November2009, the company launched an integrated marketing campaign to strengthen its

brand image.

Evaluation ofVolkswagen in its marketing strategies in India: Branding: A brandis product that is distinguished by its personality & the major element thatdistinguishes a brand is its tagline. In case of modern Volkswagen it simply readsVolkswagen Das Auto in English the Car. It is short, its catchy & it simply sayswhat 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 wellestablished themselves as reliable, luxurious &quality car companies.

This was achieved by both of these car companies when they organized the PreMonsoon Campaign: which enabled their customers across its 61 dealershipsa 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, allthe interior & exterior lighting, among other things. This was mainly done toensure safe & hassle free driving. On the other hand, Volkswagen had failed tocapture 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 positionto establish themselves with the likes of Toyota India & Maruti-Suzuki. TodayVolkswagen has a very good grasp of the Indian Automobile Market.

This was shown when they launched their best seller Polo in India at avery competitive price in 2010 thereby beating the competition from Honda (withtheir car model of the Jazz). But they could not duplicate this strategy for Skoda &


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Audi as those are luxurious car brands. Also they have an established car marketfor 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 toits customers.


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INTERNATIONAL

FINANCIAL STATEMENT


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REVENUE BY GEOGRAPHY

Revenue 105.2 billion (2009) Operating income 1.855 billion (2009) Profit 960million (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 banking-

related and wealth management businesses reflecting lower interest rates andhigher 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 tostrong 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 fromcapital depreciation, partially offset by higher transaction volumes reflecting

improved investor confidence, and the inclusion of the full quarter of revenue fromour 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-


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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 proventheir worth over the years. The Volkswagen Group considers it important toemploy Volkswagen personnel in accordance with their individual capabilities.One example of this is the "Silver Liner" project at Audi. Here Audi deliberatelyemploys older workers for the assembly of the Audi R8, drawing on their manyyears of experience. In 2001 Volkswagen launched the Work2Work programme,

which offers new employment opportunities to those who are unable to continueworking in their previous positions following a physical injury or severe illness.O perating under the premise that "adding value earns respect"; the goal of theinitiative is to place these employees in positions that are suitable to their physicalabilities and still allow them to add value. Work2Work contributes to the jobsecurity ofVolkswagen personnel. Volkswagen is also trailblazers in the area ofknowledge transfer, with a clearly structured programme to ensure that olderemployees 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 age-appropriate 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 ofVolkswagen 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.


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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 enginecompartment 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 Racing Cars Road Cars19001901 Type 21903 Type 51908 Type 10 Petit PurSang1925 Type 361929 Type 401929 Type 4119291930 Type 45/47Type 56 (electric car)1939 Type 64 (coupe)

1943/1947 Type 73C

19101914 Type 13/Type15/17/221912 Type 16 Bb19221926 Type 29Cigare1923 Type 32 Tank19241930 Type35/35A/35B/35T/35C/37/39Grand Prix19271930 Type 52

(electric racer for children)19361939 Type 57G"Tank"19371939 Type 50B19311936 Type 5319311936 Type51/51A/54GP/5919551956 Type 251

1910 Type 13[2]19121914 Type 1819131914 Type23/Brescia Tourer(roadster)19221934 Type30/38/40/43/44/49 (touringcar)19271933 Type 41Royale

19291939 Type 46/50/50T(touring car)19321935 Type 55(roadster)19341940 Type57/57S/Type 57SC (touringcar)19511956 Type 101(coupe)19571962 Type 252 (2-seater sports convertible)


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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 ofall 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 racewith 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" liftingbody.

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 anddesigned 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.


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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, andestablished 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.


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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 technicaldirector.

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 companyToscana-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 EB110in 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.


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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 passengervehicle, 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 16.4Veyron was presented as the first incarnation of what was to be a production roadcar.

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 televisionprogramme 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 engineerand 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.


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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 turbochargersSpecifications 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 (487.8cu 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 toaccommodate 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 reportedlycosts 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'sfigures, 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.


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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 finalproduction 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 realtotal 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; 1,184bhp) 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 inAugust 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.


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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 conventionalcast 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. Atspeeds 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).


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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 BugattiV

eyron 16.4 is no doubt the result of many thousands of engineeringhours, 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 thetransmission.

The engine itself is an engineering wonder and includes some interesting new anti-knock sensing. The gearbox and gear-change system are right up to date utilizingdual-wet clutches and twin layshafts. In my opinion, this is the only way to go toattain quick, smooth gearchanges for a vehicle without a manual clutch. Mostsemiautomatic 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, VolkswagenAG. Another area where the car is pushing boundaries is with its electronic controlsystems and, in particular, their application. I drove the Bugatti on the road and onthe track, which demonstrated just how seamlessly the chassis and powertrainfunctions have been sewn together.


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The chassis/body structure is hybrid like the last Bugatti (EB110) with carbon fiberused for the primary structure and aluminum alloy for the body and front crashstructure. In this respect, the all-carbon McLaren F1 and the RTM (Resin TransferMolding) 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 havebeen directed at problem-solving in the areas of cooling and vehicle stability. Atsuch high speeds, the basic shape of the Veyron will generate a lot of lift. Add tothis a large frontal area and 10 radiators and heat exchangers, and suddenly here'swhere 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 sportscars. At these sorts of speeds, a massive amount (often three or four times the netfigure) 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-effectvehicle like the McLaren F1 and Ferrari Enzo. The downforce increases as asquare of the speed, so there are large forces to design for at speeds approaching Vmax [top speed] these forces eat into available suspension travel and can causehigh-speed stability problems.

Compounding this problem is that ground-effect cars are notoriously sensitive toride height and pitch changes. I solved these problems on the F1 by having justenough downforce for high-speed stability and by giving the driver a manualcontrol 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 thechassis ECU detects a certain combination of speed and deceleration. The air brakeincreases the CD but more important, interacts with the ground-effect forces byincreasing the tail vortex and base suction, which results in an increase indownforce 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 theMcLaren air brake system but also has a hydraulic ride-height control system,which optimizes the ride heights and chassis incidence for different speeds and


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loads. The F1 goes a little further with automatic brake cooling and fan-assistedboundary 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 engineeringand packaging studies. The block model incorporates representative internalairflow 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 asa 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 mphfaster than a McLaren F1 producing 627 hp. To help understand the problem ofstarting a car program from a weak point aerodynamically, we do somecalculations: A turbocharged F1 producing 1001 hp would achieve 281 mphassuming the same drivetrain efficiency. Another way of looking at this equation isthat 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 theirtargets.

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 makingthe side mirror mounts torsionally stiff enough not to rotate at V max. Then thereare 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 acceleratingaround 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 fullyloaded and with aerodynamic load is in the order of 2 tons at 250 mph!


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Weight saving should be by design and not a post process. Weight is the cardesigner's biggest enemy. It works against you in every single aspect of vehicledynamics. Power-to-weight ratio is one of the most misunderstood figures in theauto-motive world. Achieving a good power-to-weight figure by applying hugehorsepower to a heavy car is in no way the same thing as achieving the same ratiowith 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, adesigner has to challenge the accepted major component placement in anautomobile. Styling innovation becomes more accessible when the packaging isinnovative. 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 V-12, 90 liters of fuel and good luggage space into a car the same size as a PorscheCayman. 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 anightmare. 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, noluggage space and poor three-quarter rear vieI have a "real-world" checklist whendesigning road cars: 1) size or perceived size; is the car intimidating to drive? 2)ergonomics; primary and secondary controls, pedals; 3) luggage capacity, cabinstorage; 4) driveability, slow traffic engine characteristics, overtaking; 5) ride andhandling; 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 absolutelyfair, the Veyron team did not set out to challenge the McLaren F1, Enzo or PorscheGT as the ultimate driving machine. This it certainly doesn't do at two tons withturbo lag. It also falls short of the Ferrari 612 Scaglietti and the Mercedes SLRMcLaren for high-performance touring because of the outward vision problemsand lack of luggage space. Where it absolutely succeeds is as a massive technical


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achievement a statement forVW AG. And it will be guaranteed a place inautomotive 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 alot 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 alarge factor. The Veyron's design team must be applauded because the startingpoint was so wrong. Arbitrary targets of 1000 hp and 250 mph and 0-60-mph inunder 3 seconds were set at the very beginning of the program. But worse still, astyling model was shown and accepted! This is a bad starting point for any car, butfor a high-performance car, it's a disaster.

The Veyron team has done wonders to get where it has today. I can identify withthem 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 researchedtargets for market positioning, a performance envelope and, most important, anagreed definition of what the car was trying to be. I've probably been a littlespoiled 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 modelor prototype was even begun. (Nothing in the automotive industry has its functionand targets more clearly defined than a Formula 1 car.)

During the McLaren F1 road car program, styling was not started until all themajor technical targets were set and all the engineering problems were solved,along with packaging and basic aerodynamic shape


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The styling of the Veyron is growing on me and certainly works much better in themetal. I'm thankful that the stylist was not tempted by the current trend of the ever-more complicated "melting fruit" look! I really like the top engine intakes, whichare works of art in their own right. The styling is a wonderful mlange of classiccurves and mechanical edges and elements this should ensure that the car willstill look good years from now, and therefore have a chance of becoming a futureclassic. 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 beexactly what it says! Wheel design is elegant and technical and echoes pastBugattis.

The interior is a strange mixture of simple sports car and over-the-top luxury. Thedetailing and quality are both fantastic, and the tactile side works very well with aheavyweight 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 andenjoyed on normal roads; 2) track cars; 3) collector cars, i.e., engineeringshowoffs. 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.


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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 anda little bit frightening. When you go past 200mph it actually becomes

blurred. Almost like youre trapped in an early Queen pop video. At thissort of speed the tyres and the suspension are reacting to events thathappened some time ago, and they have not finished reacting before theyre

being asked to do something else. The result is a terrifying vibration thatrattles your optical nerves, causing double vision. This is not good whenyoure covering 300ft a second.

Happily, stopping distances become irrelevant because you wont see theobstacle in the first place. By the time you know it was there, youll havegone through the windscreen, through the Pearly Gates and be half wayacross Gods breakfast table.

It has always been thus. When Louis Rigolly broke the 100mph barrier inhis Gobron in 1904, the vibration would have been terrifying. And I daresay 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 youhave to worry about. The biggest problem is the air. At 100mph itsrelaxed. At 150mph its a breeze. But at 200mph it has sufficient power tolift an 800,000lb jumbo jet off the ground. A 200mph gust of wind is strongenough to knock down an entire city. So getting a car to behave itself in


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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 steerround whatever it is you cant see because of the vibrations. Make nomistake, 200mph is at the limit of what man can do right now. Which iswhy the new Bugatti Veyron is worthy of some industrial strengthgenuflection. Because it can do 252mph. And thats just mad 252mphmeans that in straight and level flight this car is as near as makes nodifference as fast as a Hawker Hurricane.

You might point out at this juncture that the McLaren F1 could top240mph, but at that speed it was pretty much out of control. And anyway itreally 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 youdstill get to 200mph first. The Bugatti is way, way faster than anything elsethe roads have seen.

Of course, at 810,000, it is also jolly expensive, but when you look at thehistory of its development youll discover its rather more than just a car . ..

It all started when Ferdinand Pich, the swivel-eyed former boss ofVolkswagen, bought Bugatti and had someone design a concept car. This,he said, is what the next Bugatti will look like. And then, withoutconsulting anyone, he went on. And it vill have an engine that develops1000 horsepower and it vill be capable of 400kph.

His engineers were horrified. But they set to work anyway, mating twoAudi V8s to create an 8 litre W16. Which was then garnished with fourturbochargers. Needless to say, the end result produced about as much

power as the earths core, which is fine. But somehow the giant had to becooled, 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

For this, VW went to Ricardo, a British company that makes gearboxes forvarious Formula One teams.

God, it was hard, said one of the engineers I know vaguely. The gearbox


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in an F1 car only has to last a few hours. Volkswagen wanted the Veyronsto 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 of50 engineers five years to perfect.

With this done, the Veyron was shipped to Saubers F1 wind tunnel whereit quickly became apparent that while the magic 1000bhp figure had beenachieved, they were miles off the target top speed of 400kph (248mph). The

body of the car just wasn't aerodynamic enough, and Volkswagen wouldntlet 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 inFormula One. Beyond this point Bugatti was on its own.

Somehow they had to find an extra 30kph, and there was no point inlooking to the engine for answers because each extra 1kph increase in speedrequires an extra 8bhp from the power plant. An extra 30kph then wouldneed an extra 240bhp. That was not possible.

The extra speed had to come from changing small things on the body. Theystarted by fitting smaller door mirrors, which upped the top speed a bit butat too high a price. It turned out that the bigger ones had been keeping thenose of the car on the ground. Without them the stability was gone.

In other words, the door mirrors were generating downforce. That gives youan 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 onwhat speed youre going.

At 137mph, the nose of the car is lowered by 2in and the big rear spoilerslides into the slipstream. The effect is profound. You can feel the back ofthe car being pressed into the road.

However, with the spoiler in place the drag is so great youre limited to just231mph. To go faster than that you have to stop and insert your ignition key


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in a slot on the floor. This lowers the whole car still further and locks thebig back wing down. Now you have reduced downforce, which means youwont be going round any corners, but you have a clean shape. And thatmeans you can top 400kph. Thats 370ft a second.

You might want to ponder that for a moment. Covering the length of afootball pitch, in a second, in a car. And then you might want to think aboutthe braking system. A VW Polo will generate 0.6g if you stamp on themiddle 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 just10sec. Sounds good, but in those 10sec youll have covered a third of amile. 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 lookslike Victorian plumbing as well, to be honest and the roar from the tyreswas 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 expectedthis road rocket to be absolutely useless in the bends but it felt like a bigLotus Elise.

Occasionally, if I accelerated hard in a tight corner, it behaved strangely asthe four-wheel-drive system decided which axle would be best equipped todeal with the wave of power. I wont say its a nasty feel or dangerous. Justweird, 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 roadstraightens out, steady yourself for Prince Alberts boiler to gird its loins

and play havoc with the space-time continuum. No, really, you come rounda bend, see what appears to be miles and miles of dead straight road, buryyour foot in the carpet and with a big asthmatic wheeze, bang, youreinstantly at the next bend, with your eyebrow raised again.

From behind the wheel of a Veyron, France is the size of a small coconut. Icannot tell you how fast I crossed it the other day. Because you simply


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wouldnt believe me. I also cannot tell you how good this car is. I just donthave the vocabulary. I just end up stammering and dribbling and talkingwide-eyed nonsense. And everyone thinks Im on drugs.

This car cannot be judged in the same way that we judge other cars. Itmeets drive-by noise and emission regulations and it can be driven bysomeone whose only qualification is an ability to reverse round corners anddo 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 isthe Burj Al Arab. It makes even the Enzo and the Porsche Carrera GT feelslow and pointless. It is a triumph for lunacy over common sense, a triumphfor man over nature and a triumph forVolkswagen over absolutely everyother car maker in the world.

VITAL STATISTICS

Model Bugatti Veyron 16.4Engine 7993cc, 16 cylinders in a WPower 1001bhp @ 6000rpmTorque 922 lb ft @ 2200rpmTransmission 7-speed DSG, manual and autoFuel 11.7mpg (combined)CO2 574g/kmAcceleration 0-62mph: 2.5secTop speed 253mphPrice 810,345Rating Five starsVerdict Deserves 12 stars. Simply as good and as fast as it gets


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CONCLUSION

SWOT ANALYSISStrengths

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 trustworthybrands 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.


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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 AudiA4.

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 THEFASTEST 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.


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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.


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APENDIX

1.WILL VOLKSWAGEN BE ABLE TO CARVE A

NEICH AMO NG INDIAN CUSTOMERS WITH

ITS DIVERSE PRODUCTS AND OFFERINGS?

2.HOW MANY PEOPLE ASPIRE TO BUY A

BUGATTI, IN INDIA?

SURVEY

YES

NO

MAY BE

SURVEY

YES

NO

ITS NOT FOR INDIANROADS

4th Qtr


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BIBLOGRAPHY

1. WIKIPEDIA

2. GOOGLE

3. VOLKSWAGEN.COM

4. VARIOUS AUTOMOBILE BLOGS AND

WEBSITES.

PILLAI marketting volkswagen

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