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.
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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.
What price did Volkswagen pay for Bugatti?
- Cost of acquisition: $111 million (estimated)
- Date of Acquisition: 1998
- Type of Business: Manufacturer of Expensive Sports Cars
In 1998, Volkswagen began a buying spree of sports vehicle manufacturers, starting with Lamborghini. Additionally, it spent $790 million on Bentley and an estimated $50 million on Bugatti in that same year. All three were acquired at a time when the automaker was making a significant push into the markets for luxury and premium sports cars.
Is VW still the owner of Bugatti?
Volkswagen AG, also known as the Volkswagen Group internationally and with its headquarters in Wolfsburg, Lower Saxony, Germany, is a multinational automobile manufacturer. The business creates, produces, and sells motorcycles, passenger and commercial vehicles, engines, and turbomachinery in addition to providing related services including financing, leasing, and fleet management. It held the title of largest carmaker in the world in 2016 and continued to hold it in 2017, 2018 and 2019, selling 10.9 million vehicles. [7] For more than 20 years, it has consistently held the greatest market share in Europe. [8] On the 2020 Fortune Global 500 list of the biggest businesses in the world, it came in at number seven. [9]
In addition to selling passenger cars under the Audi, Bentley, Cupra, Lamborghini, Porsche, SEAT, koda, and Volkswagen names, the Volkswagen Group also sells motorcycles under the Ducati brand, light commercial vehicles under the Volkswagen Commercial Vehicles name, and heavy commercial vehicles under the names of listed subsidiary Traton (IC Bus, International, MAN, Scania and Volkswagen Caminhes e nibus). It consists of the Automotive Division and the Financial Services Division as its two main divisions, and as of 2008, it had roughly 342 subsidiary businesses. [10] FAW-Volkswagen and SAIC Volkswagen are two other significant joint ventures for Volkswagen in China. The business operates in about 150 nations and has 100 production sites spread across 27 nations.
In 1937, Volkswagen was established in Berlin and incorporated in Wolfsburg with the goal of producing the car that would come to be known as the Beetle. In the 1950s and 1960s, the company’s production increased significantly. It purchased Auto Union in 1965, which went on to build the first Audi vehicles after World War II. In the 1970s, Volkswagen introduced a new line of front-wheel-drive cars, including the Passat, Polo, and Golf, which went on to become its best-selling model. SEAT became Volkswagen’s first non-German brand when the corporation acquired a controlling interest in it in 1986. Volkswagen also gained ownership of koda in 1994, Bentley, Lamborghini, and Bugatti in 1998, Scania in 2008, and Ducati, MAN, and Porsche in 2012. Over the past ten years, the company’s operations in China have expanded significantly, making China its largest market.
Volkswagen Aktiengesellschaft is a publicly traded business with secondary listings on the Luxembourg Stock Exchange and SIX Swiss Exchange in addition to its principal listing on the Frankfurt Stock Exchange, where it is a component of the Euro Stoxx 50 stock market index. Since 1988, it has been traded via American depositary receipts in the US; it is currently traded on the OTC Market. In 2013, Volkswagen ceased trading on the London Stock Exchange. [11] [12] 12.7% of the company’s shares are owned by the Lower Saxony government, giving it legally 20% of the voting rights. [13]
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.
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. The industry leader in EVs right now is Tesla, which many automakers use as their standard for electrification. 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. Bugatti is terminating manufacture of the Chiron, and its top honcho has confirmed that the successor hypercar will be significantly electrified.
Who is the current Bugatti owner?
In 1998, Volkswagen Group purchased the Bugatti brand. Giorgetto Giugiaro of ItalDesign was hired by Bugatti Automobiles S.A.S. to create the company’s first concept car, the EB118, which made its world debut at the 1998 Paris Auto Show. The W-18 engine in the EB118 concept produced 408 kilowatts (555 PS; 547 bhp). The EB118 concept was reintroduced in 1999 at the Geneva Auto Show and the Tokyo Motor Show following its Paris debut. The EB 218 and the 18/3 Chiron, two of Bugatti’s subsequent concepts, were unveiled in 1999 at the Geneva and Frankfurt auto shows, respectively (IAA).
Veyron era (20052015)
At the Bugatti Molsheim, France assembly “studio,” Bugatti Automobiles S.A.S. started assembling its first regular-production car in September 2005, the Bugatti Veyron 16.4 (a supercar with 1001 PS and an 8-liter W-16 engine with four turbochargers). [16] [17] La Finale, the final Veyron Grand Sport Vitesse offered by Bugatti, was sold on February 23, 2015. [18]
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).
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.