Croatia’s electric supercar maker, which started in a garage a decade ago, is taking over the iconic French manufacturer Bugatti in a deal that is reported to be worth millions of euros. The Croatian car producer Rimac Automobili said Germanys Volkswagen Group, including the Porsche division which owns a majority stake in Bugatti plans to create a new joint venture. The new company will be called Bugatti-Rimac. Rimac Automobili announced Monday that it will be combining forces with Bugatti to create a new automotive and technological powerhouse.
Rimac has progressed in 10 years from a one-man garage startup to a successful company that produces electric supercars. Mate Rimac, who founded the company in 2009, says the venture is an exciting moment and calls the combination of the companies a perfect match for each other.
Porsche will own 45% of Bugatti-Rimac while Rimac Automobili will hold the remaining 55% stake, according to Croatian media reports. The financial details of the deal were not published.
Bugattis will continue to be assembled in eastern France, where the company was established in 1909. The vehicles will use engines developed and made in Croatia.
In an industry evolving at ever-increasing speed, flexibility, innovation and sustainability remain at the very core of Rimacs operations," the company said. Uniting Rimacs technical expertise and lean operations with Bugattis 110-year heritage of design and engineering prowess represents a fusion of leading automotive minds."
Volkswagen Chief Executive Herbert Diess already said in March that Porsche would most likely form a JV with Rimac involving Bugatti and end up owning a minority stake. read more
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“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," Porsche AG CEO and Volkswagen board member Oliver Blume said. Porsche AG’s Blume and the unit’s finance chief Lutz Meschke will become members of the supervisory board of Bugatti-Rimac, which will have a total of about 430 employees in Zagreb and Molsheim.
Porsche AG earlier this year raised its direct stake in Rimac to 24% in a deal that valued the electric hypercar maker, which is currently assessing strategic options, at 795 million euros ($943 million)
(With inputs from AP and Reuters)
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