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...
What price did Volkswagen pay for Lamborghini?
Despite parent company Audi’s claims that the Italian supercar producer is “not for sale,” a Swiss-Anglo investment group aspires to acquire it. Automobili Lamborghini has a $9.2 billion ($7.5 billion) buyout offer from the Volkswagen Group.
Why did Volkswagen decide to buy 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.
What was the selling price of Bugatti?
He claims that Porsche recently paid the business $70 million, and Rimac’s $2.4 million Recently, a Nevera supercar set a production car record for the fastest quarter-mile time. Both the Bugatti and Rimac businesses will continue to be based in Molsheim, France, and Zagreb, Croatia, respectively.
Volkswagen disposed of Bugatti?
Shares of Bugatti will be transferred out of the Volkswagen Group and into this new group automobile company through the new joint venture, dubbed “Bugatti Rimac.” In September 2020, CAR was the first to exclusively disclose specifics of these initiatives.
Which Bugatti does VW lose the most money on?
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).
What was Audi’s purchase price for Lamborghini?
According to Autocar, Dr. Diess and Audi Chairman Markus Duesmann are fully aware of the offer made on the business, which was established in 1963 by Italian businessman Ferruccio Lamborghini.
The 58-year-old manufacturer of supercars has been under Audi’s ownership for 23 years, despite the company’s prior financial difficulties. From 1973 until Audi purchased it, it was transferred three times and even went bankrupt in 1978.
For US$110 million, Audi acquired Lamborghini in 1998 from Indonesian firm Megatech, which was also owned by President Suharto’s younger son.
Every one of its current models
the SUV Urus, the Hurucan, and the Aventador sports vehicles
rely on the production, development, and engineering resources of Audi.
The Volkswagen Group shares its MLB Evo architecture with the Volkswagen Touareg, the Audi Q5, Q7, and Q8, the Bentley Bentayga, and the Porsche Cayenne, making the Urus the most dependent of the three on Volkswagen Group components.
In order to preserve component supply and gain access to the Volkswagen Group’s pipeline for developing electric vehicles, Quantum Group may have also recommended a strategic cooperation with the automaker.
Will Bugatti switch to all-electric cars?
Major auto manufacturers started electrifying their products only a few years ago. With a goal of further electrifying its whole lineup by 2035, General Motors has committed to releasing about 25 electric vehicles by 2025. Similar measures have been done by Ford, Stellantis, Volkswagen, and other automakers.
On the other hand, some automakers started out with EVs on the market. Tesla is now dominating the field of EVs and serves as the benchmark for electrification for numerous carmakers. Rivian, Lucid Motors, Fisker, and Rimac have now joined it. Additionally, a variety of EV manufacturers are emerging globally.
The electrification of the majority, if not the whole car industry, is probably due to Elon Musk. Demand is rising, battery technology is exploding, and the infrastructure for charging is improving quickly. Additionally, the world intends to achieve carbon neutrality by 2050.
Some automakers may not switch to all electric vehicles, but they have already decided to electrify their upcoming models. Among them is Bugatti, known for their revolutionary Veyron and Chiron hypercars. The Chiron’s production is coming to an end, and Bugatti’s chief executive just indicated that the hypercar that will replace it will be highly electric.
Is Bugatti profitable?
Actually, over the past few years, Bugatti has been incredibly profitable and successful. The former CEO did a great job, and he left me with a solid business to grow on. Therefore, Volkswagen’s issue wasn’t truly with profitability.
Who among the famous has a Bugatti?
List of well-known individuals who own Bugattis, roughly sorted by notoriety and appeal. It’s no secret that famous people enjoy driving luxurious vehicles. Every model of a luxury car is owned by numerous famous persons. A number of celebrities, athletes, and musicians drive Bugattis. The majority of celebrities spend extra money to have their Bugattis outfitted with the greatest technology and unique features.
Who is the most well-known Bugatti owner? Actor Tom Cruise, who was born on July 4th, comes in first place. Cruise drove a Bugatti Veyron to the Mission Impossible III movie premiere. Tom Cruise is renowned for both his excellent taste in vehicles and his fast and skilled driving. For his 41st birthday, Beyonce Knowles gifted her husband Jay-Z his over $2 million Bugatti Veyron. Additionally, Chris Brown has a Bugatti Veyron. In addition, The Game, Xzibit, and Birdman all drive Bugatti Veyrons.
In addition, several athletes own Bugattis. Both soccer player Cristiano Ronaldo and NFL player Tom Brady are owners of Bugatti Veyrons. He also competed in a foot race for a Nike commercial. Soccer players Tim Cahill, Roberto Carlo, and Samuel Eto’o all own Bugatti Veyrons. Jay Leno and Floyd Mayweather Jr. are two other famous people that own Bugattis. With all that money, these celebrities could purchase a black, red, or white Bugatti.
Are these famous Bugatti owners making an impression on you? Do you consider them to be excessive? Comment with your ideas in the space provided.
The one with the most Bugattis?
Some vehicle collectors want diversity, while others are devoted supporters of a particular marque. According to a press release from Bugatti, Fritz Schlumpf, the man who acquired 30 Bugattis all at once, experienced this. One of the oddest tales in the world of auto collecting is the one involving his enormous collection of historic cars.
When Schlumpf was 22 years old in 1928, he purchased his first Bugatti. He raced the vehicle and even maintained communication with the still-open Bugatti plant. In 1957, Schlumpf and his brother Hans decided to open an automobile museum with a concentration on Bugatti after launching a prosperous wool selling business. An abandoned wool factory in Mulhouse, Alsace, was purchased by them. They only required a few vehicles.
Schlumpf started assembling his collection in 1961. Using a registry maintained by Hugh Conway of the British Bugatti Owners Club, he first made contact with Bugatti owners all around the world. Conway connected Schlumpf with John W. Shakespeare, who was hiding a collection of 30 Bugattis close to his Hoffman, Illinois, home.
Shakespeare received a $70,000 lump-sum offer from Schlumpf. Shakespeare responded with a figure of $105,000. Bob Shaw, a Bugatti expert, evaluated the collection and advised Schlumpf against purchasing the majority of the vehicles due to their poor condition. Schlumpf nevertheless responded with a proposal for $80,000.
After “tough talks, mutual threats, and extortion,” Schlumpf and Shakespeare eventually settled on a $85,000 purchase price after two years of negotiations, according to Bugatti. That works out to $720,000 in today’s dollars, which is still only about a third of the cost of a single Chiron. The cost of delivering the autos to France was included.
The 30 automobiles were hauled to New Orleans by rail before being put on a ship and sailing to Le Havre, France. In 1965, Schlumpf and his brother released a press statement outlining their ideas for a museum, but it never saw the light of day. The Schlumpf brothers finally fled to Switzerland in the 1970s due to the demise of the French textile sector and labor unrest over questionable business practices. In 1977, workers found the buried hoard of Bugattis.
In the end, the automobiles did receive some attention. Schlumpf’s vision of a Bugatti-focused automobile museum was realized when a portion of the collection served as the foundation for the Cit de l’Automobile, a museum established in Mulhouse, Alsace, with support from the French government. Others are included in the collection of the Mullin Automotive Museum in Oxnard, California.