Bugatti could be driven out of business if the supercar manufacturer is forced to comply with US airbag rules that come into force next month, the French subsidiary of Volkswagen has told American safety regulators.

Bugatti has warned the National Highway Traffic Safety Administration it would face "substantial economic hardship" from the rules, which would require it to redesign its sole model, the £810,000 Veyron. The cost would add 10 per cent to the car's price, with a "catastrophic" effect on sales, it said.