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 firms will keep their individual offices, but Rimac hopes to eventually unite its employees at the proposed $200 million complex in Croatia, which is expected 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.
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Volkswagen sold Bugatti, right?
Volkswagen announced on Monday that it was ceding management of Bugatti, the legendary automaker whose exorbitantly expensive hypercars are revered by enthusiasts but felt out of place at a business better known for practical Golfs and Passats.
A joint venture between Volkswagen’s Porsche division and Rimac, a young Croatian company that has established itself handling design and engineering projects for major automakers, will include Bugatti, whose Chiron model has a starting price of about $3 million.
The joint company, known as Bugatti-Rimac, will be owned by Rimac to the tune of 55%, and Porsche to the tune of 45%. The company’s 33-year-old founder Mate Rimac will serve as CEO. The businesses omitted financial information.
The agreement destroys a significant legacy left by Ferdinand Pich, who ruled Volkswagen for two decades and turned the organization into a multinational conglomerate. Long before it acquired Porsche, Volkswagen bought Bugatti in 1998 to avoid bankruptcy. This move was widely viewed as Mr. Pich’s indulgence and one with dubious commercial sense. According to Mr. Pich, who was then the CEO of Volkswagen, the inspiration for the project came from one of his sons admiring a replica of a vintage Bugatti at a gift store when the family was on holiday in Spain.
Porsche CEO Oliver Blume admitted on Monday that the agreement frees Volkswagen up to concentrate on more crucial objectives by removing a source of distraction. A couple of them are switching to the production of electric vehicles and recovering from an emissions crisis.
How come VW sold 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.
Lamborghini: a Volkswagen product?
Ten brands from five different European nations make up the Group: Audi, Lamborghini, Bentley, Porsche, Ducati, KODA, SEAT, and Volkswagen Commercial Vehicles. The Volkswagen Group also has a large number of additional brands and business divisions, including financial services. Volkswagen Financial Services includes leasing, leasing for customers and dealers, banking, insurance, and fleet management services.
The Volkswagen Group is laying the groundwork for the biggest change process in its history with its NEW AUTO – Mobility for Generations to Come Group strategy and future program: the realignment of one of the best automakers to become a leading provider of sustainable mobility on a global scale. To do so, the Group will change its core automotive business, which will include, among other things, the introduction of another 30 or more fully electric vehicles by 2025 and the expansion of battery technology and autonomous driving as new key businesses.
What portion of Bugatti is owned by VW?
The Volkswagen Group has officially announced a partnership between its Bugatti hypercar brand and rapidly expanding Croatian electric-vehicle technology business Rimac, which has been rumored since last fall.
According to the transaction made public on Monday, Rimac will control 55% of the new joint venture in which Bugatti will operate, and Porsche, the VW Group division presently in charge of Bugatti and owner of a 24% share in Rimac, would own the other 45%.
In the fourth quarter of 2021, the new joint venture will be officially founded as Bugatti Rimac, with its main offices to be located in Rimac’s sizable technological complex being built in Zagreb, Croatia. Mate Rimac, the founder and CEO of Rimac, will also serve as the joint venture’s CEO, in charge of roughly 430 staff members.
The Bugatti Rimac joint venture will bring together Rimac’s expertise in vehicle electrification and high-performance electric powertrains with Bugatti’s historical significance, superior craftsmanship, and lightweight construction talents.
Additionally, Rimac introduces fresh organizational and development methods, particularly in the field of software integration. In addition, Bugatti brings a seasoned global dealer network and a cutting-edge production facility in Molsheim, France. This year, Bugatti will set new sales records in North America thanks to its dealer network.
Beginning with the Bugatti Chiron and the recently unveiled Rimac Nevera, Bugatti Rimac will be in charge of designing automobiles for both the Bugatti and Rimac brands. Production of Bugatti will continue in France, while that of Rimac will continue in Croatia, where work will also be done on crucial components required by Bugatti.
Despite collaborating with an electric vehicle technology company, Bugatti won’t immediately give up on internal combustion engines. Within this decade, hybrid and all-electric cars are anticipated, with the first pure electric Bugatti probably coming in a second model line. Stephan Winkelmann, a former executive at Bugatti, has made hints about a crossover for the second model line.
“Mate Rimac stated in a statement, “I have always liked vehicles and can see at Bugatti where enthusiasm for cars can take you to. “I can’t even begin to express how thrilled I am about the prospect of these two businesses fusing their respective expertise, technologies, and beliefs to produce some truly unique initiatives in the future.
With a 37% ownership stake, Mate Rimac is Rimac’s largest shareholder. Porsche comes in second with a 24% stake, followed by Hyundai Motor Group with a 12% share. Smaller investors own the remaining 27%. Rimac is also establishing a Rimac Technology business, which will be in charge of licensing technology to other parties, in order to maintain some independence.
Bugatti Chiron’s owner?
Several tales about Indians who reside overseas and drive high-end vehicles, including SUVs, have been covered on our site. There are no modern-day Bugattis in India, despite the rumors that Bollywood stars own them. Many Indians are Bugatti Veyron owners. Despite the fact that there are numerous Indians who own Bugatti Veyrons worldwide, only one has a Bugatti Chiron in his garage. The only Indian in the world to own a Bugatti Chiron is Mayur Shree, who resides in the United States.
Real estate entrepreneur Mayur Shree is based in Texas, USA. Mayur Shree had bought the Chiron few years earlier. Although the precise cost of the Chiron is unknown, it is assumed to be somewhere in the range of Rs 21 crore. It will cost more for the buyer to install optional upgrades, so plan accordingly. Additionally, the one in the video has a distinctive paint job. One of Mayur’s most expensive vehicles in his garage is a Bugatti Chiron. The 8.0 liter, quad-turbocharged W16 engine that powers the Bugatti Chiron produces 1,479 Bhp of maximum power and 1,600 Nm of maximum torque. The fact that there are only 100 Bugatti Chirons in existence increases the car’s exclusivity or rarity on the road. The first Chiron to be delivered in Texas was the one that Mayur owned.
What is the price of a Bugatti?
The 2022 Chiron is the ultimate automobile as well as the ultimate Bugatti. Period. This $3 million work of art has a 16-cylinder engine with four turbochargers that produces at least 1500 horsepower and can pound the tarmac at over 200 mph. Even more power is available in the more costly Super Sport model. The Chiron’s interior is equally as beautifully crafted as its exterior and pampers passengers with high-end materials, which helps to explain its high price. But let’s face itthe audience is paying for this performance. If you’re hoping for contemporary conveniences like Apple CarPlay or driver-assistance technology, you won’t find them here. However, after you’ve driven this beast, you won’t likely care about such tiny flaws.