Porsche and Rimac takeover Bugatti in new joint venture

After months of speculation and rumours, Porsche, Bugatti, and Rimac have confirmed details of a groundbreaking partnership.

According to Porsche, Volkswagen, the current owner of Bugatti, will transfer its shares of the French marque into the new partnership between the Stuttgart and Zagreb firms, creating a new name – Bugatti-Rimac.

The deal will see Rimac hold a 55 per cent stake in Bugatti, while Porsche will take possession of the remaining 45 per cent.

It’s worth noting, Porsche also holds a 24 per cent stake in Rimac, with the German sportscar manufacturer first investing into the pioneering Croatian EV brand back in 2018, most recently upping its stake in the company again in March 2021.

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Mate Rimac, founder of the EV maker, will assume the role of CEO of Bugatti-Rimac.

“This really is an exciting moment. Rimac Automobili has grown very quickly and the joint venture takes the company to a completely new level,” Rimac said.

“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 technology, while Bugatti has more than a century of experience in the development of top-class cars and therefore brings with it an outstanding tradition that is practically unique in the history of the automotive industry.

“Together we will pool our knowledge, our technology and our assets with the goal of creating very special projects in the future.”

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In the immediate future, the newly named venture will see Bugatti continue producing its celebrated Chiron hypercar at its Molsheim factory in France, while Rimac will keep creating its Nevera, claimed to be the quickest accelerating production car in the world.

Porsche said the new venture would also spawn new products at a later date.

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Oliver Blume, chairman of the executive board at Porsche AG, will also sit on the Supervisory Board of Bugatti-Rimac.

“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,” Blume said.

“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 new partnership is due to take effect in the fourth quarter of 2021. It will employ roughly 430 employees, of which 300 will work at company headquarters in Zagreb, Croatia, with the remaining 130 working from Bugatti’s Molsheim facility.