The auto industry’s general strategic shift to electric vehicles necessitates some sacrifice, and this may be in the area of large, powerful combustion engines, such as Bugatti. Volkswagen AG (OTC: VWAGY) has announced the sale of its supercar division, with Croatian electric car startup Rimac Automobili and Volkswagen’s luxury sportscar division Porsche AG as the new owners. This partnership should facilitate Bugatti’s transition to the electric era, ensuring that it remains at the top of the extremely high-performance sports car industry.
A Long and Interesting History
Bugatti is one of the most well-known names in the world of super-luxury automobiles. In 1952, the company was on the verge of going out of business with the death of its founder, Ettore Bugatti. Romano Artioli, an Italian billionaire, bought it in 1987 and revived it as a manufacturer of ultra-exclusive sports vehicles. In 1998, Volkswagen purchased the company and continued the company’s traditions.
Ferdinand Piech, chairman of the executive board of Volkswagen from 1993 to 2002 and chairman of the supervisory board from 2002 to 2015, was responsible for the development and production of many iconic Volkswagen Group models, including the Audi Quattro, Porsche 911, and Bugatti Veyron, the world’s fastest legal car at the time. Ferdinand Porsche, the founder of the Porsche firm and the inventor of the Volkswagen Beetle, was Piech’s grandfather.
Rimac Automobili is a company that specializes in automobiles.
First and foremost, Rimac Automobili will become Rimac Group, a holding company with two business units: Rimac Technology and Bugatti Rimac. Rimac Technology is a well-established company that will continue to sell EV technology to other manufacturers. The hypercar business will be held by Bugatti Rimac, which will continue to produce both the all-electric Rimac Nevera and the Bugatti Chiron. It will, of course, develop all future Bugatti models, including electric Bugatti models.
Rimac will hold a 55 percent stake in the new firm, with Porsche AG owning the remaining 45 percent. Porsche will retain a 24 percent stake in Rimac as well. The combined company’s CEO will be Mr. Rimac. Rimac’s headquarters, as well as its EV technology and automobile models, will be based in Croatia. Bugatti’s production will continue to be based in Molsheim, France, near the German border.
Plans for the Future
The new corporation has ambitious plans for the new Rimac site in Sveta Nedelja, just outside of Zagreb. In the future, this is where Bugatti’s component development and manufacture will take place. This will also serve as the group’s new headquarters, with a budget of 200 million euros and a space of 100,000 square meters. It is planned to be completed in 2023, and it will employ 2,500 professionals once it opens.
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