Currently reading: Report: Volkswagen Group to sell Bugatti to Rimac by end of 2020
Rimac stakeholder Porsche is set to raise its stake in Croatian EV specialist to retain some control of Bugatti
News
2 mins read
18 September 2020

The Volkswagen Group is considering selling Bugatti to EV specialist Rimac as part of a consolidation of volume car operations – and Porsche looks set to play an integral role in the deal.

The proposed sale, although not officially confirmed, was the main topic at a recent Volkswagen Group supervisory board member meeting, according to Germany’s Manager Magazin. It said chairman Herbert Diess is hopeful of concluding a signing of contracts by end of 2020.

To enable Rimac to finance the purchase of Bugatti, Volkswagen Group-owned Porsche is expected to boost its current 15.5% shareholding in the Croatian company to as much as 49%.

The increased Porsche shareholding in Rimac is planned to enable the Volkswagen Group to remain active in the future decision processes at Bugatti, according to one insider, who told Autocar that talks between the German giant and Rimac are ongoing, with final decisions on the complex three-way purchase yet to be made.

Autocar’s request for comment was denied by Bugatti, Porsche and Rimac.

Under the condition of the sale said to be proposed by Volkswagen, Bugatti would switch its focus from combustion-engined to electric supercars, using driveline and battery knowhow developed by Rimac for its 1888bhp C_Two hypercar.

The purchase by Rimac of Bugatti and the increased shareholding of Porsche would be dependent on the agreement of a number of current stakeholders, including Chinese battery specialist Camel Group and Hong Kong-based China Dynamics, further sources suggest.

Founded in 1909, Bugatti sold 82 cars in 2019, mainly examples of the Chiron, which features a quad-turbocharged 8.0-litre W16 petrol engine developing 1479bhp.

Bugatti’s most recent model, the 1578bhp Centodieci, is based on the Chiron. It's planned to be built in a limited run of just 10, each priced at €8 million (£7.3m).

Rimac, headquartered in Sveta Nedelja, near the Croatian capital Zagreb, was established in 2009 by Mate Rimac.

Autocar understands that Bugatti was initially offered to Gregor Piëch, a son of former Volkswagen Group chairman Ferdinand Piëch. However, this sale never came to fruition.

Under Diess, Volkswagen is currently undergoing a major reorganisation, with a focus on electric mobility and a renewed focus on volume production.

The futures of its upper luxury car brands, including Bentley, Bugatti and Lamborghini, as well as motorcycle manufacturer Ducati and design studio Italdesign, are all said to be under scrutiny as the company seeks to cut costs in order to fund the electrification plans of its volume brands – Audi, Seat, Skoda and Volkswagen – and an extension of Porsche's EV operations in co-operation with Rimac. 

Read more

Rimac C_Two: 1888bhp hypercar on track for 2021 deliveries​

Porsche increases stake in hypercar EV maker Rimac​

Bugatti unveils £7.4m limited-run Centodieci hypercar​

Advertisement
Advertisement

Find an Autocar review

Back to top

Join the debate

Comments
11

18 September 2020

 Certainly reads that is what the ultimate goal is.

18 September 2020

Makes sense with the VW Group already owning a high end luxury brand through Bentley and a high end sports car/hypercar brand in Lamborghini.

18 September 2020

is obvious what is actually going on here. I'm surprised...hang on...no I'm not, that this type of "tail wagging the dog with a false bone thrown in for good measure" deal can be done.

18 September 2020
405line wrote:

is obvious what is actually going on here. I'm surprised...hang on...no I'm not, that this type of "tail wagging the dog with a false bone thrown in for good measure" deal can be done.

 

You're being a bit oblique here. What's happening I think is that VAG get effective control of Rimac but aren't paying any cash - they are gifting Bugatti instead. Of course VAG is not getting rid of Bugatti, rather future Rimacs will be Bugattis instead.

For a company that's sold less than 10 cars in total,  Rimac has a big reputation. They claim leadership in performance EV tech but it's hard to see what that is based on. I am not sure who does best out of this... for VAG's sake, let's hope the technology is worth it.

18 September 2020
It makes sense. Big car manufacturers should give up on vanity models, halo cars, and focus on the core business. VW in particular should focus on the MEB. Niche constructors like Rimac can take better care of a brand like Bugatti.

18 September 2020

If JLR get the chance they should buy Bentley off VW as it would stop them having to take Range Rover even further upmarket whilst giving them a model to platform share with. The XJ and future Bentleys would also enable more component sharing where no one cares.

18 September 2020

I bet the Bentley "brand" is worth more than TATA can afford right now

18 September 2020

To me sounds like Bugatti going back to treading the fine line of survival and bankruptcy.

Rimic do not have the deep pockets to keep Bugatti funded to continue producing the leading HyperCars in the world,

it was a vanity purchase never one that made commercial sense, VW Group are putting themselves in a Win:Win situation. If Rimiac succeed they will benefit, having offloaded a high cost, low volume entity. if they go bankrupt VW will cherrypick the bits of Rimic of interest without paying a premium!

19 September 2020
Bugatti even sold will be ownd by vw ag, indirect with Porsche, witch will own Rimac, to be exactly, 49 shares... for the rest of the brands, i would not sold them, they are priceless!

19 September 2020
Sell them* srry.

Pages

Add your comment

Log in or register to post comments

Find an Autocar car review