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As VW electrifies, it questions the role of Lamborghini, Bugatti, Ducati

FRANKFURT — Volkswagen needs to change to stay relevant in the electric and digital vehicle era and will announce "important steps" to that end before the close of the year, Chief Executive Herbert Diess said on Wednesday. "Volkswagen needs to change: From a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering — to a digital company that reliably operates millions of mobility devices worldwide," Diess told shareholders at the company's virtual general meeting. Vehicles need to stay in contact with customers, offer new services and comfort functions on a weekly or even daily basis, he said. "We will take further important steps to set the course for this in the rest of 2020," Diess said. Senior executives told Reuters the company is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play as the company increasingly focuses on electric, digital and autonomous vehicles. Volkswagen, which also owns VW, Audi, Porsche, Seat and Skoda, is looking at whether it has the resources to accelerate development of electric platforms for smaller brands at a time it is investing billions to transform its more mainstream cars. Asked whether Ducati, which is known for making noisy combustion-engined motorbikes, has an electric future, Markus Duesmann, who oversees research and development for the group, said: "It will not take long until we see an electric Ducati." Whether Ducati, which is a medium-sized premium motorbike brand, would offer an electric variant, depends on whether a bike could offer range comparable to a combustion-engined variant, Duesmann said. Advances are being made in battery technology which could make this possible, he added. Separately Frank Witter, the company's chief financial officer, in response to a question about whether a sale of Lamborghini is planned, said Volkswagen does not comment on speculation about potential divestments. Lamborghini's Chief Executive Stefano Domenicali this week announced his departure from the sports car maker to take on a new job as president of Formula One. VW needs cash Volkswagen is reviewing the future of these three high-performance brands as part of broader quest for more economies of scale as it shifts to mass producing electric cars, senior executives told Reuters.

Bugatti won't drop piston-powered cars under Rimac ownership

Volkswagen solved its Bugatti problem by merging the French carmaker with Croatia-based Rimac. Both companies will face the regulatory challenges of the 2020s together, but hastily putting the Chiron out to pasture and lazily resorting to badge engineering isn't an option, according to the man in charge of the newly-formed group. "I'm a car guy. We will not just recycle what we have — not restyle the Chiron or hybridize the Chiron. We're developing a completely new product from the ground up. Everything, because we think that's the best way to go. That product will have an internal combustion engine," said Mate Rimac in an interview with Auto Express. In a separate interview with Autocar, he added that "what some people expect might happen is that we take a Nevera and slam a Bugatti logo on it and call it a Bugatti." He stressed "that's absolutely not going to happen." Whether that internal combustion engine will be the thunderous W16 that powers the Chiron, among several other cars, remains to be seen. Rumors occasionally puff out of the auto industry's chimney claiming the unit will retire when the Chiron does. Regardless, an internal combustion engine won't power Bugatti's next models on its own. Hybrid technology will gradually appear to increase horsepower and acceleration times while improving fuel efficiency. Of course, the whole point of putting Bugatti under Rimac's roof is to give the former access to the latter's electric technology. Some degree of technology transfer is inevitable, though the partnership may take time to bear fruits. "I'll say that, within this decade, there will be a fully electric Bugatti. But, by the end of this decade, there will be combustion-engined Bugatti models as well, but heavily hybridized," Mate Rimac said. While "Bugatti is going electric" is likely to be the main takeaway, Rimac's comments also confirm that a multi-model range is in the pipeline. Auto Express speculated one way Bugatti could credibly expand beyond the hypercar segment is to release a sedan. Finally, Rimac played down concerns that Bugatti and Rimac will ultimately overlap. "Bugatti is about heritage and craftsmanship; Rimac focuses on technology. It's like Bugatti being an analog Swiss watch, and Rimac cars being an Apple watch," he said. "We can have two parallel, very distinct product lines." Related Video:

Creative minds build lightweight Lambos and Bugattis with cardboard and pedals

As manufacturers continue their quests to reduce the weight of their vehicles, they switch out heavy steel for lighter materials such as aluminum, carbon fiber, titanium, and sometimes even magnesium. But they've been ignoring a cheap alternative that is widely available: cardboard. Leave it to two visionaries from Vietnam to crack the code and build supercars and superbikes out of the versatile paper product. Vietnamese YouTube channel NHET TV, via CarScoops, might only have a year under its belt, but in that short amount of time, it has amassed more than 350,000 subscribers. What initially started out as a random collection of harmless pranks, trolls, and makeshift time-killers has blossomed into an entertaining channel of ultra-low-budget car and motorcycle builds.  The first video posted is a paper plane competition, but the second video shows the first appearance of a vehicle, a Ducati Panigale made out of cardboard and a bicycle. This isn't like Paper Mario with a two-dimensional silhouette, it's a close-enough three-dimensional replica. That project was admittedly pretty rough, but the work has only improved as the channel has matured.  Throughout the past year, NHET TV has stuck with high-performance transportation for inspiration. They've built projects that mimic a Lamborghini Sian, a Lamborghini Aventador SVJ, a Ferrari LaFerrari FXX K, a Bugatti Chiron, a BMW S 1000 RR, and a Yamaha YZF-R6, among others. Some of the builds, such as the Bugatti, go beyond the typical cardboard-body-on-bicycle-frame. As seen in the video below, the NHET TV built a tubular frame for the car using spare bike parts that they welded together. The Bug even has a custom steering column and steering wheel, though the high-quality model continues to use bike chains and pedals for power. The SVJ might be the most advanced vehicle, as it has a real engine for power and has custom reverse gearing. These guys are creating fun out of the limited resources they do have, and that's what right now is all about. Enjoy the videos below and watch more on the full NHET TV channel.