Bugatti And Rimac Form New Venture For The Electrified Future
Modified On Jul 06, 2021 06:45 PM By Sonny
The French carmaker that paved the way for 1000hp hypercars has tied up with the Croatian company that did the same with EVs
The company born of the joint venture will be called Bugatti-Rimac.
Rimac is a Croatian EV specialist with a focus on high-performance EV components.
This JV is likely to benefit all brands in the conglomerate, considering Bugatti is a subsidiary of the VW Group.
Rimac Group to be the majority shareholder in the new venture.
Bugatti and Rimac will continue their independent operations as well.
The French performance and luxury marquee of Bugatti has now been incorporated into a joint venture between Porsche and Rimac. The new venture is called Bugatti-Rimac, with the latter having the majority share and the rest owned by Porsche.
Rimac Automobili is the Croatian EV brand set up in 2009. It has risen to prominence with its EV-specific technology solutions and game-changing electric hypercars like the Concept One and the recently unveiled Nevera. On the other hand, the Bugatti brand has been around for a long time and has enjoyed relative stability since it was revived in the late 1990s as a Volkswagen Group subsidiary. The automotive conglomerate will bring Bugatti into the joint venture after which its shares will be transferred to Porsche.
The joint venture combines Bugatti’s rich heritage as a luxury performance brand with Rimac’s innovation in electric mobility technology. Both will continue operating independently too; Bugatti Chirons will be manufactured in Molsheim, France, while Rimac will be operating in Zagreb, Croatia.
Courtesy of this JV, both companies will be able to pool their resources and technical expertise. Since Bugatti is part of the VW Group, the new technology birthed by the JV will likely have a trickle-down effect on the various sub-brands and their vehicles in the future.
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Mate Rimac, founder and CEO of Rimac: “This really is an exciting moment. Rimac Automobili has grown very quickly and the joint venture takes the company to a com-pletely new level. Bugatti and Rimac are a perfect match for each other and both contribute important assets: we have established ourselves as an industry pioneer for electric technologies, while Bugatti has more than a century of experience in development of top-class cars and therefore brings with it an outstanding tradition that is practically unique in the history of the automotive industry.”
Oliver Blume, Chairman of the Executive Board at Porsche AG: “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. Bugatti is contributing a tradition-rich brand, iconic products, a loyal customer base and a global dealer organisation to the joint venture. In addition to technology, Rimac is providing new development and organisational approaches.”
The Bugatti-Rimac company will be separate from Rimac Technology. The latter is responsible for the development, production, and supply of various EV components, including drivetrains and battery systems to many automotive manufacturers.
Porsche was among the first traditional automotive brands to buy a stake in Rimac in 2018 ( Hyundai Motor Group also entered into a strategic partnership with the Croatian company in 2019). Founder Mate Rimac has a 37 percent stake in the Rimac Group, followed by Porsche at 24 percent, Hyundai at 12 percent, and other investors combining 27 percent. Mate will be the CEO of Bugatti-Rimac (along with that of the Rimac Group), and the new JV will be headquartered in Croatia at the Rimac Campus scheduled to open in 2023.
Rimac has already established itself in the performance EV segment, and this new venture with Bugatti should further cement its position. Also, the French carmaker is expected to develop electric successors for iconic models like the Veyron and Chiron. Rimac’s EV tech prowess will likely benefit future mass-market EVs as well, the results of which we can expect to see from its partnerships with the likes of Hyundai.
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