Published on July 6th, 2021 | by Joshua Chin0
Rimac Officially Takes Controlling Stake In Bugatti
Bugatti now slides under the control of Rimac, with Porsche being the minority stakeholder.
Though the makers of the Veyron and Chiron won’t technically be straying far from the clutches of the German auto giant, as Porsche has taken the minority 45% stake in the newly established Bugatti Rimac joint venture. To make things even more complicated too, it is worth noting that the Stuggart stallion actually owns 24% of the Croatian EV hypercar manufacturer.
Putting the business talk to one side first however, the main points that have been agreed upon in terms of the future of these two automakers is that Bugatti and Rimac will remain separate entities for the time being. And while the headquarters of this joint venture will be at based at Rimac’s home of Zagreb, both hypercar marques will still be retaining their respective current French and Croatian production facilities.
Petrolheads can rejoice too as Bugatti will still be retaining some form of internal combustion powertrain setup moving forward, albeit in a heavily hybridised form. Inevitably though, it has been reported for the French hypercar marque will soon be launching its first all-electric model by the end of the decade.
For those thinking that the next EV Bugatti will just be a rebadged and rebodied Nevera however, this idea has (fortunately) been quickly shot down by Bugatti-Rimac CEO Mate Rimac. What is in the pipeline though for the French hypercar manufacturer appears to be up to three future models, with various hints alluding to the fact that not all three are to be full-fat hypercars too.
Now getting back to the business side of things meanwhile, there has been some changes in Rimac’s internal structure to accommodate the incorporation of this new joint-venture. The biggest of which being the formation of the Rimac Group umbrella corporation, that will house the Bugatti Rimac joint venture and its independent Rimac Technology division.
The complicated org chart above pretty much explains the state of play between the various stakeholders within the Croatian EV hypercar manufacturer’s expanding business. What is nevertheless worth highlighting however is that Rimac Technology will continue to be working with other manufacturers on EV powertrain development, and that Hyundai (technically) now has a tiny stake in Bugatti too with its 12% stake in the Rimac Group.
PRESS RELEASE: Today, Porsche and Rimac Automobili have finalized the plans to establish a new joint venture including Bugatti, named Bugatti Rimac. The two companies‘ CEOs Oliver Blume and Mate Rimac signed the relevant contracts, establishing the share split in Bugatti Rimac with 55 percent being held by Rimac Automobili and 45 percent by Porsche. The formation of the joint company is due to take place in the fourth quarter of 2021, subject to the approval of antitrust authorities in several countries. Bugatti will be brought into the joint company by current owner Volkswagen and the shares will then be transferred to Porsche. The new company Bugatti Rimac combines the genes of both strong brands. Together they form an attractive automotive company, for customers as well as for employees.
Bugatti Automobiles S.A.S. will remain at its historic headquarters in Molsheim, France, where it was founded in 1909. Bugatti has always stood at the pinnacle of the automotive industry, exceeding the dreams of its customers and enthusiasts around the globe. With its long tradition and experience, Bugatti is a strong contributor to Bugatti Rimac, bringing in all of its know-how in manufacture and craftsmanship, carbon fiber and other lightweight materials, small series production, as well as an unique and experienced network of worldwide dealership partners.
Porsche and Rimac Automobili are the perfect partners to accompany Bugatti into the future. Porsche entered into a fruitful partnership with Rimac Automobili as early as 2018, subsequently increasing its shares in the young, agile and fast-paced Croatian automotive and technology company. Today, Porsche holds a 24 percent share in Rimac Automobili. Porsche itself is known as a leading sports car manufacturer from Stuttgart, Germany, having been the most profitable company within the Volkswagen Group. Rimac Automobili on the other hand has established itself as an industry pioneer in electric technologies, both as a technology supplier as well as an electric hypercar manufacturer with recent the launch of the new Rimac Nevera.
Oliver Blume, Chairman of the Executive Board at Porsche AG: “We are combining Bugatti’s strong expertise in the hyper sports car business with Rimac’s tremendous innovative strength in the highly promising field of electric mobility. Bugatti is contributing a tradition-rich brand, iconic products, unique quality standards and craftsmanship, a loyal customer base and a global dealer network to the joint venture. In addition to technology, Rimac is contributing new development and organizational approaches.”
Mate Rimac, founder and CEO of Rimac Automobili: “This is a truly exciting moment in the short, yet rapidly expanding history of Rimac Automobili and this new venture takes things to a completely new level. I have always loved cars and can see at Bugatti where passion for cars can take you to. I can’t begin to tell you how excited I am by the potential of these two brands combining knowledge, technologies and values to create some truly special projects in the future.”