Categories: News

Bugatti and Rimac: imminent merger!

To ensure Bugatti’s electric future, Porsche will orchestrate its merger with Rimac.

In the vast web that is the Volkswagen group, we have been waiting for this announcement for several months. This time it’s official: Bugatti and Rimac will merge. In practice, everything will go through Porsche, which owns 24% of Rimac.

If you are probably familiar with Bugatti, Rimac is still relatively unknown. Founded by Mate Rimac, often referred to as European Elon Musk, this start-up specializes in the design of very high performance batteries. The latter equip (among others) the Rimac Nevara hypercar, which produces more than 1,900 hp. Seeing the potential of the company, Porsche invested heavily in it, and returned to its capital to the tune of 24% in 2018.

For its part, Bugatti must face a model made difficult to justify on the European scene, with W16 heat engines which will be quickly driven out by anti-CO2 regulations. Equip the futures Bugatti ultra-high performance batteries, allowing it to survive the electrical transition while increasing the performance of its models, therefore makes perfect sense.

Bugatti production ensured in Molsheim

In practice, it is not no direct redemption Bugatti by Rimac, as rumor has it. The two brands will found a joint venture

, called unsurprisingly Bugatti-Rimac, who will be responsible for developing the next hypercars for the two manufacturers. Bugatti-Rimac will be 55% owned by Rimac, with Porsche recovering the remaining 45%.

Concretely, Bugatti will lose control of the development of its future models in favor of Rimac and Porsche. Detail that could also go unnoticed: Porsche thus regains control of Bugatti, until then remained under the Volkswagen umbrella. A new step in the complicated political relationship between the two groups: the Volkswagen group owns Porsche, but the Porsche holding company owns the Volkswagen group …

The merger will be effective by the end of the year. For now, Bugatti and Rimac will continue to produce their two flagship models, the Chiron and the Nevara. Bugatti-Rimac’s headquarters will be located in Zagreb, Croatia, but production of future electric Bugattis will still take place in the brand’s historic workshops in Molsheim, Alsace.

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