Bugatti CEO: Don’t Compete with Chinese Automakers on Their Terms

Mate Rimac:

What you should not do is trying to do what everyone else is doing and where the Chinese will be very hard to beat. Bigger screens, less buttons, faster recharge times. Don't do that.

[…]

Thick leather, real materials, real stuff. Stuff like this. And yes, you can say, well, that's a luxury car. That's not for everyone. We need to make a car for everyone. That's where we disagree. I think you won't be able to do. We need to find our niche. Like the Swiss found their watchmaking. They don't make a watch for everyone, but that's where most of the profit is. They just make 5% of the world's watches, but 90% of the profits in watchmaking.

Porsche has moved in this direction and is willing to accept a smaller China business as a result. In contrast, premium players like BMW and Mercedes are attempting to compete on screens, battery technology, and other comparative dimensions while preserving distinctiveness at the much greater volumes their businesses require.

The Swiss watch analogy is apt given the technology parallels. Faced with technology that’s cheaper and more effective at the core job of telling time, Swiss watchmakers lean into materials, prestige, and exclusivity. Despite increasing industry electrification, Porsche’s 911 models are, and will reportedly always be, internal combustion.