With this merger, Bugatti’s future and legacy are intactby Khris Bharath, on
We have been following this story (Bugatti-Rimac merger) for a while now at TopSpeed and the day has finally come. Porsche and Rimac , the Croatian EV performance automaker, have agreed to form a joint venture that will include Volkswagen’s high-performance marque; Bugatti .
In this long-rumored acquisition, two of the biggest names in the automobile business have come together. It will see the EV hypercar manufacturer, which was created in 2009 and has until now, delivered only a handful of automobiles, assume majority ownership of the French marque founded over 112 years ago. As we know, Bugatti is one of the most influential names in the auto industry having incredible pedigree and rich racing heritage.
Who gets what?
Rimac Automobili will now be rebranded as the Rimac Group as part of the agreement, and it will own the majority of the new Bugatti-Rimac business.
Rimac will get a 55 percent part in this joint venture, whereas Porsche will retain a 45 percent stake. Volkswagen, which owns both Porsche and Bugatti, will transfer Bugatti’s shares to Porsche, who will subsequently sell them to Rimac. Porsche also presently already holds a 24 percent holding in Rimac, jumping from a 10 percent stake in the company since 2018.
Rimac’s 33-year-old founder, Mate Rimac will assume leadership of the new firm as CEO. He currently holds the largest stake at 37% along with Korean Automaker Hyundai, which has also shown an interest in Rimac ’s EV tech, holds 12%.
In a statement, Porsche CEO Oliver Blume said, “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,”
What exciting products can we look forward to from the Bugatti-Rimac Merger?
The two companies’ cars will be badged and manufactured independently, however, future Bugattis will employ Rimac’s high-performance electric drivetrains.
The first vehicles anticipated from this collaboration are an eight-cylinder version of the Bugatti Chiron with 1500 horsepower and the all-electric hypercar Rimac Nevera, which has up to 1900 horsepower. The Nevera as we already know can reach a speed in excess of 250 mph.
Rimac Technology, a new company completely owned by the Rimac Group, will continue to develop and offer high-performance EV powertrains and autonomous driving systems to mainstream automakers.
It has previously completed approximately 30 such projects and is currently collaborating with at least ten other automakers, including its two OEM shareholders and the likes of manufacturers like Mercedes Benz and Ferrari.
Mate Rimac, who launched the company in his garage in 2009, hailed the partnership as an “exciting moment” and has said the companies will “perfectly match each other”.
Porsche will indirectly own the majority of the newly amalgamated firm with its 45 percent investment in the Bugatti-Rimac merger and the existing 24 percent ownership in the Rimac Group.
Bugatti-Rimac will employ roughly 430 people. This includes 300 employees at Rimac’s Croatian HQ and 130 at Bugatti. Rimac-branded vehicles will still be manufactured in Croatia and in 2023, the corporation will relocate to a stunning new $240 million Rimac Campus close to Zagreb, the Croatian capital.
Bugatti automobiles meanwhile will continue to be built at the firm’s château and atelier in Molsheim, in eastern France, where the historic brand was founded back in 1909
With that said, the future looks rather exciting for the Rimac-Bugatti group. Ettore Bugatti would have been happy to know that the legacy of his name seems intact and will continue to live on with an EV heart.