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From howstuffworks.com:
(As far as we know, it doesn't)
1001 horsepower: How the Bugatti Veyron works
Welcome to the height of high performance: The Bugatti Veyron is an incredible car built around an even more incredible engine. The 16-cylinder monster produces 1001 horsepower for a top speed of more than 250 mph. And it's a passenger car.
Overheard at the U.S. Grand Prix
Race announcer: "Webber is slowing, he appears to have a puncture.''
Wag in Jaguar suite: "Yes, a puncture. But it's in the engine.''
Source: HighBeam Research, But Wait, There's More...(BWTM)