There has been much talk in the context of Rimac working with Porsche and Bugatti and their arrangement has now become official: a new hypercar company called Bugatti-Rimac.
The details of this new joint venture are quite business-ey but the gist of it is that Bugatti has been incorporated into this joint venture. Rimac has 55 per cent of the share and Bugatti’s 45 per cent share will be transferred to Porsche, the two brands being under the umbrella of the Volkswagen Group.
A brief introduction to Rimac: EV specialist from Croatia, founded by a car enthusiast by the name of Mate Rimac. He’s not an eco-evangelist who wants everyone to drive a Toyota Prius or a Nissan Leaf. Instead, he wants driving toys that can go fast and prefers the performance of an electric drivetrain. The company was founded in 2009 and thanks to its innovations in EV components, from battery systems to drivetrains, Rimac is now a world leader in performance EVs with ties to various manufacturers like Porsche and Hyundai. Their most recent proof of technological excellence is their new hypercar, the Nevera.
Bugatti has been around for a lot longer with a patchy history of active operations. However, it’s always been prestigious in the luxury performance space and has been quite successful since it was revived by Volkswagen at the turn of the Millenium with era-defining cars like the Veyron and Chiron.
The joint venture combines Bugatti’s rich heritage with Rimac’s innovation in electric mobility technology. These leading marquees 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.
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.”
Both will continue operating independently too; Bugatti Chirons will be manufactured in Molsheim, France, while Rimac will be operating in Zagreb, Croatia.
Ahead of this JV, the Rimac Group was conscious to split its technological avenue into a separate entity called Rimac Technology which will not be part of Bugatti-Rimac LLC. It’s the branch that 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 per cent stake in the Rimac Group, followed by Porsche at 24 per cent, Hyundai at 12 per cent, and other investors combining 27 per cent. 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.
Croatian tech meets French design? Can’t wait to see how their first collaborative project turns out! What do you make of this shift in the luxury performance paradigm? Share your thoughts in the comments below and don’t forget to subscribe to the blog for more cool updates from the car world and you can follow us on Twitter & Instagram (@autoloons).