Volkswagen handed over Bugatti which is its ultra-luxury brand with Croatian electric supercar manufacturer Rimac Automobile and extends the life of the French manufacturer known for its large 16-cylinder engines.
The company said in a statement that Rimac will own 55% of the joint venture with Porsche’s sports car division, with the latter owning the remaining 45%. At the beginning of the year, Porsche increased its stake in Rimac to 24%.
Volkswagen boss Herbert Diess stepped up his efforts to concentrate funds on the namesake brands of the German group Audi and Porsche because the largest European automaker has made the biggest leap in the automotive and electric vehicle industries. Pull the company to join. The business side of the company.
Volkswagen began to consider niche brands and aftermarket options five years ago, but the results so far have not been good.
Bugatti established a joint venture with Rimac after it was cut in the 2019 IPO that sold industrial gear manufacturer Rank AG and a minority stake in Traton SE’s freight division at the end of last year.
Porsche boss Oliver Bloom told reporters in a live webcast that Bugatti has made steady progress in recent years. He said that the joint venture with Rimac is said to provide “very good profitability” comparable to that of supercar manufacturers.
Bugatti-Rimac is expected to be launched in the fourth quarter, awaiting approval of the antitrust law. These brands will initially produce all-electric Bugatti Chiron and Rimac Fridge.
Bugatti is the smallest brand in the Volkswagen Group, with an annual sales volume of approximately 80 vehicles, and has long been regarded as a model of engineering luxury.
In 1998, after a major disappearance in the 1950s, it was revived under the leadership of former President Ferdinand Pich. Cost and displacement Volkswagen’s first 16-cylinder Veyron Bugatti is considered one of the biggest losers in the automotive industry.
Volkswagen does not provide any information about the financial status of the Volkswagen division.
Bugatti’s new industrial partner was founded by Mate Rimac in 2009, and the Concept One electric supercar made its debut two years later.
In addition to Porsche, the company’s investors also include Hyundai Motor Company and Kia Motors, And a Chinese car manufacturer Camel Group
Mate Rimac said that an all-electric Bugatti will appear in the mid-term, but he also sees opportunities for hybrid vehicles to use internal combustion engines “for a while.”
“We will listen to the opinions of fans and customers and develop products that are meaningful to the brand,” Rimak said.