In order to create a new firm called Bugatti Rimac, Croatian electric supercar startup Rimac stated that it was purchasing Bugatti from Volkswagen. The Financial Times broke the news first.
Mate Rimac, who started the business as a one-man operation in a garage in 2009, will serve as its CEO. Since then, Rimac has grown to be a highly coveted brand, and other established manufacturers have requested the startup’s assistance in producing their own electric supercars.
Why that is is not much of a mystery. Rimac unveiled the Nevera earlier this year. It has four motors, 1,914 horsepower, a top speed of 258 mph, and can accelerate from zero to 60 mph in less than two seconds. The Nevera is anticipated to surpass the Bugatti Chiron as the fastest sports car ever produced.
In accordance with the agreement, Rimac will hold a controlling 55 percent stake in Bugatti, a French automaker with a history dating back to 1911 and known for its expensive supercars like the Chiron and Veyron. The remaining shares in Bugatti will be owned by VW’s Porsche brand. (The firms told FT that despite Porsche owning some stock in Rimac, its total holding will not give it a controlling interest in Bugatti.)
After purchasing Rolls-Royce and Lamborghini, Volkswagen paid $50 million to acquire Bugatti, which it has owned ever since. According to Porsche CEO Oliver Blume, this was an all-stock transaction, which means that no money was exchanged.
Both Bugatti Rimac and Rimac Technologies, a division of the business specializing in the development, manufacture, and distribution of battery systems, drivetrains, and other EV components, will be owned by Rimac Group. Rimac has provided auto parts over the years to Porsche, Hyundai, and, yes, Bugatti.
“Bugatti and Rimac will both continue as separate respective brands, keeping use of the current production and distribution infrastructure,” according to Rimac.
By combining resources and skills in research and development, production, and other fields, Bugatti Rimac symbolizes the organization that will shape the future of both Bugatti and Rimac automobiles.
Both businesses will continue to operate out of their individual locations, but Rimac intends to eventually combine their staff at the $200 million facility it is building in Croatia and expects to open in 2023.
“In the brief but fast growing history of Rimac Automobili, Mate Rimac remarked in a release, “This is a genuinely exciting time.” “We have experienced so much in such a short period of time, but this new endeavor raises the bar significantly. When it comes to the contributions that each of us makes, Rimac and Bugatti are a wonderful combination. We have positioned ourselves as an industry leader in electric technologies since we are a young, nimble, and fast-paced automotive and technology firm.
Rimac predicted that Bugatti would make hybrid models to the end of this decade while also having an electric vehicle this decade.
In This Article...
Who is the owner of Bugatti?
Volkswagen owns Bugatti, right? Yes, Volkswagen bought the business to give the brand fresh life. Beginning in 1999, Bugatti Automobile SAS was recognized as a Volkswagen subsidiary and was once again based in Alsace, the company’s original headquarters.
Is VW still home to Bugatti?
He intends to use that to produce electric drivetrains and battery systems that can be marketed in large quantities, as well as new-generation Bugatti hypercars without having to invest billions of dollars. Despite being lucrative, Rimac, who turned 34 this month, explained why Bugatti was no longer the best fit for the VW Group.
Is Bugatti suffering a loss?
The world’s fastest and most potent production automobile is the stunning Bugatti Veyron.
A new study by Wall Street research firm Bernstein Research found that for every Veyron sold, Bugatti (and its parent company Volkswagen) suffers a staggering $6.24 million loss.
That number should be treated with extreme caution. Don’t take these statistics too seriously, the report’s authors caution, adding that their projections “are obviously very, very approximate.”
The firm does not provide financial information, but a Bugatti spokeswoman stated, “The quoted statistics of Bernstein Research are not feasible.”
The Veyron is described in the report as “a tour de force of engineering” and “the most ambitious and sophisticated automobile ever put on sale.” The editors and readers of BBC Top Gear magazine declared it the best vehicle of the previous 20 years last month. One could easily argue that it is the most impressive car ever produced.
How then could a fantastic car with a price tag of about $1.5 million lose so much money? The experts blame the extremely low volume and high R&D costs (approximately $1.62 billion) (Bugatti has sold about 40 Veyrons annually since 2009).
Is there a supercar from VW?
Many people feel that the concept car Volkswagen produced would have been a great supercar. Sadly, despite breaking numerous records, it never reached the sales floor. The layout and positioning of the engine in the car were both rather intriguing. The Nardo was developed jointly by Volkswagen and the Italdesign Giugiaro studio and had a powerful engine that was renowned for its torque production. In addition, it had beautiful interior and external details. Every step of the construction assembly was clearly high-tech.
Learn more about the Volkswagen W12 Nard and the records it set by reading on.
Why did VW purchase a Bugatti?
Volkswagen acquired this French premium, ultra-high-performance brand in 1998. Ferdinand Piech encouraged Volkswagen to purchase the rights to manufacture automobiles under the Bugatti brand as a logical step after purchasing Lamborghini and Bentley. As a completely owned company, Volkswagen formally incorporated Bugatti Automobiles in 2000.
After that, Piech personally listed the requirements for the Bugatti he intended Volkswagen to produce: The vehicle needed to have more than 1000 horsepower, be able to reach 60 mph in less than three seconds, have a top speed of 250 mph, and be opulent and steady enough for him to take Mrs. Piech to the opera in the evening.
The objectives were simple. Meeting them, though, was everything but. First off, there simply wasn’t a tire that could handle a vehicle as large, powerful, and heavy as the Veyron at 250 mph. Although preparations for the Bugatti Veyron 16.4’s introduction to production began in 2003, the first Veyron wasn’t delivered to a customer until 2005.
After the Veyron was discontinued in 2014, Bugatti made headlines once more with the over $3 million, 1,479-horsepower Chiron that was unveiled at the 2016 Geneva Motor Show. The Divo and La Voiture Noire special edition car, a one-of-a-kind 1,500-hp vehicle produced and sold for $18.9.5 million, is the follow-up from Bugatti. Despite having a $9 million price tag, the Centodieci, a rebodied Chiron, was displayed in August 2019 and all 10 were sold. The Chiron Super Sport 300+ has been timed at 304 mph, keeping Bugatti’s title as the world’s fastest production car, and the brand also unveiled the Chiron Pur Sport, which is designed with handling in mind.
How much does a Bugatti’s auto insurance cost?
Those who purchase a Bugatti Chiron Sport “110 Ans most certainly has more than enough cash to cover the cost of the hypercar’s insurance. They might not have known, though, that it would cost $50,000 year. Yes, the insurance on the limited-edition Chiron Sport costs that much. ValuePenguin estimates the car’s annual insurance cost to be $50,000.
To be fair, the Bugatti Chiron Sport “110 Ans is a costly car. Although some sellers are charging considerably more than that, the MSRP is almost $3.2 million. According to Carscoops, a build slot costs $4.5 million at one dealer in Munich, Germany.
You presumably aren’t too concerned about the $50,000 in insurance premiums each year if you’re spending that much on a new Bugatti. However, $50,000 a year sounds utterly absurd if you’re not used to spending millions of dollars on an automobile.
A 30-year-old male residing in New York City who wants full coverage on the car was used to determine the insurance. It seems to reason that, depending on the person’s location and information, the $50,000 yearly cost might be waived. Considering that, it’s unlikely to significantly reduce the cost. I hope you’ll be able to pay your insurance if you have your heart set on the new Bugatti.
How come Bugatti stopped producing cars?
Automobiles German and then French automaker Ettore Bugatti specialized in producing high-performance vehicles. The business was established in 1909 by Italian-born industrial designer Ettore Bugatti in Molsheim, Alsace, which was then a part of Germany. The vehicles were well-known for both their numerous race triumphs and stunning design. The Type 35 Grand Prix cars, the Type 41 “Royale,” the Type 57 “Atlantic,” and the Type 55 sports car are all well-known Bugatti vehicles.
Ettore Bugatti’s passing in 1947 dealt a serious blow to the brand, while his son Jean’s passing in 1939 left the manufacture without a leader to take over. Only roughly 8,000 automobiles were produced. A last model was produced by the company in the 1950s until it was eventually acquired for its airplane parts business in 1963 due to financial difficulties.
The brand was purchased by an Italian businessman in 1987, and he resurrected it as Bugatti Automobili SpA.