Porsche AG, Rimac confirms partnership to include VW’s Bugatti
A perfect team for innovative EV’s is being built as Volkswagen Group’s Porsche has confirmed to form a joint venture with Croatia’s Rimac Automobili that will include VW’s Bugatti brand. The venture will be called Bugatti-Rimac, and 55% of shares will be owned by Rimac, while Porsche will own 45%.
As the fast-rising Croatian electric-vehicle technology company, Rimac will bring its expertise in vehicle electrification and high-performance electric powertrains. It will also be integrated with the company’s new development and organizational approaches. These will be combined with Bugatti’s historical significance, quality craftsmanship, and the automaker’s high-tech production facility in Molsheim, France.
Porsche CEO and VW Group board member Oliver Blume expressed, “We are combining Bugatti’s strong expertise in the hypercar business with Rimac’s tremendous innovative strength in the highly promising field of electric mobility.”
Under the venture will be a production of two hypercars, the Bugatti Chiron and the all-electric Rimac Nevera.
Ventured for electrification
Under the venture will be a production of two hypercars, the Bugatti Chiron and the all-electric Rimac Nevera. However, both will remain in their respective production facilities, whereas Bugatti in France while Rimac, in Croatia.
Bugatti models for both hybrid and pure electric are planned within this decade. And the first pure electric Bugatti is likely to be a second model line. However, this stresses that the automaker does not intend to abandon the internal combustion engine just yet despite the venture.
Moreover, the positive results of Bugatti in recent years are the fruit of the prime engineering extravagance of the brand despite being the smallest brand of VW Groups with an annual sale of about 80 cars.
Furthermore, Mate Rimac expressed his love for cars and how he sees the potential of the two brands. Combining of knowledge, technologies, and values that will create special projects in the future.
The venture will be called Bugatti-Rimac, and Rimac will own 55% of its shares, and Porsche will own the remaining 45%.
Grounds for a good profit and positive results
Porsche’s Blume spoke of how the venture with Rimac will yield “very good profitability” appropriate with a hypercar manufacturer. A partnership of Porsche and Rimac three years ago has already resulted in a close relationship.
Member of the Executive Board for Finance, Lutz Meschke, said “This joint venture is the provisional culmination of a strategic chain of investments. We already purchased the first shares in Rimac in 2018 and have successively increased our shareholding since then.”
This will give an edge for Porsche to play a substantial role in the venture. Earlier this year, it has raised its direct stake in Rimac to 24 percent in a deal. Now, it is assessing strategic options at 795 million euros ($943 million).
Mate Rimac said, “Rimac Automobili has grown very quickly, and the joint venture takes the company to a completely new level. Bugatti and Rimac are a perfect match for each other, and both contribute important assets.”
With Bugatti’s strong expertise in the hypercar business, it is expected to match Rimac’s tremendous innovative strength.
As the joint venture promises exciting new possibilities of car electrification, it is also expected to yield great investment results. Moreover, it seeks to perform each Brand’s expertise, prime engineering and history, thus creating a very close relationship.
The perfect team as they say. Bugatti-Rimac promises highly in the field of electric mobility that will offer an evolution of innovative and groundbreaking cars. And this will set an opportunity to combine two of the world’s best brands.
Great partnerships thrive, in people, in companies, in cars.
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