Deal of the Century: Rimac, which has not produced a single car, took control of Bugatti

Deal of the Century: Rimac, which has not produced a single car, took control of Bugatti

An hour ago, Rimac’s Mate Rimac and Porsche’s Oliver Blum announced a very unusual alliance, a joint venture that will include the Bugatti brand. The Croatian will own 55 percent share in the joint venture Bugatti Rimac, and the Germans – 45 percent. Headquarters of the joint venture will be located in the homeland of Rimac – in Zagreb. But do not think we are talking about a veiled takeover of Bugatti Automobiles SAS: in turn Porsche owns 24% of Rimac Automobili and has been successfully cooperating with its engineering center for three years.

“We are combining Bugatti’s extensive experience in hypercar development with Rimac’s tremendous innovative power in the promising field of electric vehicles,” Oliver Blum, chairman of the management board of Porsche AG, commented on the deal. – Bugatti contributes with its rich tradition, iconic products, loyal customer base and global dealer network. In turn, Rimac, in addition to technology, offers new approaches to development and organization.”

Initially the joint venture will produce two hypercar models: the 16-cylinder Bugatti Chiron and the all-electric four-motor Rimac Nevera. And in the future all Bugatti models will be produced at the brand’s plant in Molesheim, France. This manufacturing facility is known throughout the world for its perfectionism and superior quality in design and engineering. Jointly developed Bugatti models are planned in the long term.

“This is a really exciting moment: our company has grown very quickly, and the joint venture takes it to a whole new level,” reveals Mate Rimac, founder and CEO of Rimac. – Bugatti and Rimac are a perfect match, and both make important contributions to the common cause. We have established ourselves as pioneers in the field of electric technology, while Bugatti has more than a century of experience in developing high-end cars and therefore brings with it an outstanding tradition that is virtually unparalleled in automotive history. Together, we will combine our knowledge, our technology and our assets to create special projects for the future.”

Porsche will play a crucial role in the joint venture as a strategic partner. The CEO figure (Rimac) will be balanced by Porsche AG executives Oliver Blum and Lutz Meschke, who have joined the Bugatti-Rimac supervisory board. At its inception, the joint venture will have about 430 employees: about 300 at the company’s headquarters in Zagreb and 130 at Bugatti’s production site in Molsheim.

“This joint venture is the preliminary completion of a strategic chain of investments,” notes Mr. Meschke. – We acquired the first shares of Rimac in 2018 and have been steadily increasing our stake since then. We established a close relationship with Mate and his extremely innovative team very early on and are now benefiting from it. With his know-how, Rimac is helping us successfully lead an emotional and important brand into the future. I am very proud and happy that we have realized this alliance despite many challenges. Today is a good day for Bugatti and Rimac, for Porsche, and for the Volkswagen Group.