Volkswagen Group is closing a 28-year chapter with Bugatti, removing the storied luxury brand from its portfolio. Porsche, which assumed stewardship of Bugatti in 2021, is selling its stake to a consortium of investors, marking the end of an era for the iconic automaker.

Bugatti’s Origins and Revival

Founded in 1909 by Ettore Bugatti in the Alsace region—a territory contested by France and Germany—the original Bugatti brand produced cars until 1963. The brand’s modern resurgence began in the late 1980s with the EB110, a groundbreaking supercar featuring a carbon fiber monocoque built by Aérospatiale (now Airbus), a 3.5-liter V12 engine with four turbochargers, and all-wheel drive. Despite its advanced engineering, the EB110 struggled against competition from the McLaren F1 and economic downturns, leading to its discontinuation in the mid-1990s.

Volkswagen Group’s Reinvention of Bugatti

The Bugatti we recognize today was revived in 1998 under Ferdinand Piech, then CEO of Volkswagen Group. Piech aimed to showcase the engineering prowess of VW Group, leading to projects like the ultra-efficient XL1 commuter car and the legendary Bugatti Veyron. The Veyron, a hand-built mid-engined two-seater, delivered 1,000 metric horsepower with remarkable drivability, making it accessible even for a grandmother’s opera outing.