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.
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From whom was Bugatti purchased?
(CNN)Rimac Group, a Croatian manufacturer of high-end electric supercars that also owns Bugatti, revealed that it has secured 500 million, or roughly $536 million in additional financing. Porsche, which currently owns nearly a quarter of the business, is one of the participants in the new financing round.
In 2009, Rimac Automobili was established with the purpose of building electric supercars with high horsepower. The business also entered into agreements to develop and produce high-performance electric drive components for high-end cars with other automakers like Aston Martin and Sweden’s Koenigsegg.
Last year, the corporation divided its supercar manufacturing and EV component businesses, with Rimac Group managing both of the new businesses. In addition, Rimac’s supercar division acquired Bugatti, which was separated from the Volkswagen Group. Although Rimac owns the majority of the newly established Bugatti Rimac, Porsche, which is controlled by Volkswagen and also owns the aforementioned portion of the Rimac Group as a whole, owns 45% of Bugatti Rimac. The Rimac Group continues to be the only owner of the EV component industry.
Goldman Sachs and SoftBank took the lead in the most recent funding round. InvestIndustrial, a significant investor in Rimac already, took part in this latest round of financing as well. According to the company, Mate Rimac, the 34-year-old founder of Rimac, continues to be the company’s largest shareholder. According to Mate Rimac, this is the largest single investment round Rimac has ever received. According to Rimac, that suggests a total corporate valuation of $2 billion.
Rimac Technologies, a completely owned part of Rimac Group, continues to provide other businesses with important electric car components, such as fully functional chassis, electric motors, and hybrid and electric vehicle batteries. Among others, it has collaborated with Automobili Pininfarina and Aston Martin.
Volkswagen sold a Bugatti to Rimac, right?
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 said in a statement, “I have always loved cars and can see at Bugatti where passion 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.
Sells VW any Lamborghinis?
On a rim cap in a showroom of a Volkswagen automobile dealer in Brussels, Belgium, on July 9, 2020, the German automaker Volkswagen’s emblem can be seen. Photograph by Francois Lenoir for REUTERS
- Summary
- According to Autocar, Quantum Group made a 7.5 billion euro bid.
- Companies
- According to VW, Lamborghini will continue to be a part of the corporation.
- According to Audi, Lamborghini is not for sale.
The non-binding bid outlines the parameters for the acquisition of Automobili Lamborghini by Quantum Group AG of Switzerland, which has joined forces with Centricus Asset Management of London, according to Autocar. (https://bit.ly/3hSmxhW)
According to the story, which was based on offer paperwork, the consortium would also guarantee 850 new employment and provide job security for current Lamborghini employees for up to five years.
According to Piech Automobile’s website, Rea Stark, a founding member of Quantum Group, founded the company alongside Toni Piech, the son of former Volkswagen Chairman Ferdinand Piech.
The rumored offer for Lamborghini comes amid doubts about Volkswagen’s plans to maintain a large organization that already houses brands like Ducati, Audi, Porsche, and Bugatti.
Lamborghini, which has frequently been mentioned as a potential divestiture candidate in the past, will stay a part of Volkswagen, according to Volkswagen, which verified that there was consensus within the company on this matter.
When asked to comment on the Autocar article, a representative of the Volkswagen subsidiary Audi, which oversees Lamborghini, said: “The group doesn’t talk about this in any detail. Lamborghini is not for sale, sorry.”
Centricus and Quantum Group representatives weren’t immediately available for comment.
Stephan Winkelmann, CEO of Lamborghini, stated last week that the company aimed to invest $1.5 billion to create a line-up that was exclusively gas-electric hybrids by 2024, adding that the brand’s first totally electric vehicle would not be available until the second half of the decade. View More
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.
Who is the current Bugatti owner?
On December 22, 1998, Volkswagen AG, a German automaker now governed by Porsche SE, created Bugatti Automobiles S.A.S. as a wholly owned subsidiary with French registration. On the same day, the company acquired the design and branding rights to Bugatti from Italian industrialist Romano Artioli, who produced supercars in Italy with Bugatti SpA between 1987 and 1998, including the EB 110 and EB 112. The official name of the Bugatti automotive brand, still referred to as Bugatti, since 2000 has been Bugatti Automobiles S.A.S. Since that time, the company’s main office has been in Molsheim, France.
Karl-Heinz Neumann, a former VW powertrain executive, was named president of Bugatti Automobiles S.A.S. on December 22, 2000, when Volkswagen formally incorporated the company. In order to use it as the business’s headquarters, the corporation bought the 1856 Chteau Saint Jean, originally Ettore Bugatti’s guest home in Dorlisheim, close to Molsheim. Snecma, which still held the original factory, was adamant about holding onto it. Volkswagen declared that they would instead construct a new cutting-edge atelier (factory) close to and south of the chteau at the Pebble Beach Concours d’Elegance in August 2000. The atelier received its formal opening on September 3, 2005.
Volkswagen revealed its plans to sell the Bugatti car brand in September 2020, and negotiations with the Croatian firm Rimac Automobili soon followed. Approximately 700 Bugatti vehicles have been sold since 2005[5], but according to the Volkswagen Group, Herbert Diess considered the unprofitable brand as ballast. [6]
2020 saw 77 Bugatti automobiles delivered to customers. Bugatti declared in January 2021 that it has grown operating profit for the third consecutive year. The company’s history’s most prosperous year was this one.
It was announced in July 2021 that Rimac Automobili’s sports car division and Bugatti Automobiles will combine to establish Bugatti Rimac, a partnership between Rimac Automobili and Porsche AG.
[7] Porsche AG would own the remaining 45% of Bugatti Rimac together with a 24% stake in the newly created Rimac Group, making the latter the majority shareholder with a 55% holding. [8] In the fourth quarter of 2021, Bugatti Rimac d.o.o. was established. [3]
After years of producing one-of-a-kind and limited-edition vehicles, Bugatti formally established its own bespoke subsidiary, Sur Mesure, in December 2021.
[9] The word’s French translation is “tailored.” [9]
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.
If so, will it be electric?
Although Bugatti-Rimac has already unveiled a battery-powered scooter, it is likely that it will soon reveal an electric hypercar as well. Early this year, it demonstrated the “aerodynamic yet functional 35-pound magnesium-alloy scooter” in collaboration with a business called Bytech International.
Does Porsche manufacture hypercars?
Porsche plans to return to the Le Mans racetrack in 2023 with a brand-new hypercar that will include a hybrid powertrain.
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Porsche, a German manufacturer of high-performance luxury vehicles, hopes to win the Le Mans 24 Hour Endurance competition in 2023. For the better part of the twenty-first century, the manufacturer under the Volkswagen Ag banner has seen success at the renowned automobile event. However, it was forced to take a sabbatical following the infamous Volkswagen Dieselgate scandal, which damaged the reputation of all of VW’s subsidiary businesses.