112-year-old Bugatti makes some of the most exclusive cars in the world. Its combination of ultra-luxury and mind-boggling speed has defined the hypercar genre for decades, especially under the stewardship of the Volkswagen group, it has thrived since 1998. In the age of electric cars, however, its dependence on the internal combustion engine would’ve antiquated the brand soon. In a masterful move, Volkswagen Group has handed over all its shares of Bugatti to its subsidiary Porsche which is another iconic sports car brand. Porsche, like most brands in the Volkswagen group, has been on its journey of electrifying its portfolio. Its investment in electric hypercar startup Rimac gave it a 24 percent stake in 2018 and a technology flow-over. But now the relationship is even closer, as Porsche has handed its control of Bugatti to Rimac and formed a joint venture called Bugatti Rimac in which it is a 45 percent stakeholder.
Rimac is restructuring its corporate structure fully – creating a holding company called the Rimac Group which has a controlling 55 percent stake in the newly formed Bugatti Rimac. It cites Rimac Technologies as its other business and the entity cites Porsche, Hyundai as stakeholders amongst other investors. Mate Rimac, the founder and CEO of RimacAutomobilii will continue to be the CEO of the new Rimac Group with him being the leader of both Bugatti Rimac and Rimac Technologies. He also retains 37 percent of his stake in the Rimac Group. Porsche has a 24 percent stake in the Rimac Group, while Hyundai owns 12 percent in the new entity.
Under the new structure, Porsche gets 45 percent stake in the JV and retains its 24 percent stake in the Rimac Group.
“Bugatti and Rimac will both continue as separate respective brands, retaining existing production facilities and distribution channels,” Mate Rimac says. “Bugatti Rimac represents the company that will develop the future of both Bugatti and Rimac vehicles, by joining resources and expertise in research and development, production, and other areas,” he adds.
Rimac and Bugatti as brands will remain separate — while Bugattis will be built to their exacting standards from their home in France while Rimac’s will be continued to made in Croatia. As of now, Rimac’s new electric hypercar, the Nevera will be sold separately from the Bugatti Chiron – but together, the JV is now home to two of the most powerful hypercars – one being based on hybrid technology with an internal combustion engine at its heart and the other one fully being propelled by batteries and electric motors.
Rimac’s technology has attracted it to many automakers like Porsche and Hyundai which previously invested in it. Its technologies unit supplied parts and technology to some of the world’s biggest OEMs like Porsche, Aston Martin, Pininfarina, and of course Bugatti. In fact, the Rimac Nevera takes over the mantel of the world’s fastest hypercar from the Bugatti Chiron with its 1,888 bhp Nevera having the ability to achieve 0-100 km/h in less than 2 seconds.
Rimac is also building a new headquarters in Croatia which will open in 2023 replete with its now test track and uniquely will be a fully open campus. Bugatti will most likely utilise Rimac’s technology to make a fully electric hypercar something which Mate Rimac hinted at. This will take time, though, with the new vehicle coming only by the end of the decade, so in the meanwhile, it will continue to sell its hybrid cars alongside fully electric Rimac branded vehicles.
“This is a truly exciting moment in the short, yet rapidly expanding history of Rimac Automobili. We have gone through so much in such a short space of time, but this new venture takes things to a completely new level. Rimac and Bugatti are a perfect match in terms of what we each bring to the table. As a young, agile and fast-paced automotive and technology company, we have established ourselves as an industry pioneer in electric technologies,” Mate Rimac added.
“We are combining Bugatti’s strong expertise in the hypercar business with Rimac’s tremendous innovative strength in the highly promising field of electromobility. Bugatti is contributing a tradition-rich brand, iconic products, 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,” said Oliver Blume, Chairman of the Executive Board at Porsche AG.
