History was made in the automotive industry on November 1, 2021, when Porsche, Bugatti, and Rimac signed an agreement setting up a joint venture. Happening barely four months after it was first announced, the new joint venture, Bugatti Rimac, is headed by Mate Rimac, the firm's highest shareholder. To serve with Mate Rimac on the supervisory and management boards are top officials from Bugatti, Rimac Group, and Porsche.
With headquarters in Croatia, the joint venture has Porsche as a strategic partner and holds exciting prospects for customers and employees. Pooling their technologies together, the two trailblazers will chart a new course in automotive engineering. The two companies, each one a giant in their own right, will continue to develop and build their cars independent of the other. As the partnership thunders off the line, here's everything we know about the Bugatti Rimac joint venture.
10 Headquartered In Croatia
The newly incorporated Bugatti-Rimac is, for the time being, operating out of Rimac's global headquarters on the outskirts of Zagreb, Croatia. However, a move to the permanent headquarters at Rimac Campus is being planned for 2023. Also to serve as headquarters for Rimac Technology, the campus is located on a 100000 m² property in Sveta Nedelja, about 10 miles from Zagreb city center.
With facilities to accommodate 2500 people, the €200M state of the art campus will serve as a center where research and development will be carried out for future Bugatti and Rimac cars.
9 Mate Rimac At The Helm
At the helm, steering the course of the new partnership, is Mate Rimac, founder and CEO of Rimac Automobili. Rimac, a 33-year old Croatian innovator and a graduate of the VERN University of Applied Science founded Rimac Automobili in 2009 and Greyp Bikes in 2013.
From a one-man venture, Rimac nurtured and grew the company into one of the major players in the automotive industry. Considering how far Rimac has brought Group in 12 years, the budding joint venture could not have been in safer hands.
8 Continued Independence For All Parties
Although Bugatti and Rimac have come together under one umbrella, both brands will continue to exist and operate independently. Still operating in its current premises, Rimac Automobili will continue to create its hypercars while also developing systems for other companies.
Bugatti Automobiles S.A.S. on the other hand will still be operating and crafting out its well-loved models at the Bugatti factory in Molsheim, France. The partnership is not a death sentence for either company as both of them will retain their factories, badges, and existing distribution networks.
7 Rimac Holds Major Shares
According to the terms and conditions governing the formation of the joint venture, the major shareholder is Rimac Group with a 55% stake. The remaining 45% stake is held by Porsche AG who also happens to hold a 22% stake in Rimac Group.
According to the shareholder structure of Rimac Group, Mate Rimac holds a 35% stake, Hyundai Motor Group holds 11%, and other investors hold 32%. No money changed hands in the deal since the joint venture is not an acquisition but a platform where ideas and technology will be shared.
6 A Blend Of Superior Auto Genes
The Bugatti-Rimac joint venture is a perfect match, bringing together the best of two worlds - the old and the new. Bugatti, representing the old, brings more than 100 years of experience in design and engineering to the partnership.
It also brings global distribution channels and a lousy customer base while Rimac will contribute innovative energy in the field of electric mobility. In addition to the obvious benefits to the shareholders, this joint venture has the potential to define a new chapter in the history of hypercars.
5 The Apex Of Strategic Investment
In a bid to form a development partnership with Rimac Automobili, Porsche AG acquired a 10% share in the Croatian company. Since Porsche's initial investment, and following Rimac's exponential growth and technological development, Porsche has had to increase its holdings two more times.
The joint venture between the two automakers today is the climax of a series of strategic investments that began in 2018. By seeing potential in Rimac and acting on it, Porsche may just have helped ease Bugatti into a greener future.
4 First Two Models
On the menu, for starters, Bugatti Rimac will build two hypercars, the all-electric Nevera for Rimac and the Chiron for Bugatti. The Rimac Nevera is a beast that hits 60 mph in 1.85s, clears the quarter-mile in 8.58s, and maxes out at 256 mph, making it the fastest accelerating car.
Bugatti Chiron on the other hand, being no slouch either, is the record-breaking hypercar that rides on an 8-liter quad-turbo W16 power plant. With 150 Neveras and 200 Chirons to build, Bugatti Rimac will be up to a busy start.
3 Porsche As Strategic Partner
Since Porsche AG played a significant part in the events that led to the formation of the joint venture, it is to serve the partnership as a strategic partner. With 45% holdings in Bugatti Rimac in addition to the 22% stake in Rimac Group, the deal is really between Rimac and Porsche.
The supervisory board of the new joint venture includes Oliver Blume, C.E.O. of Porsche, and Lutz Meschke (deputy chairman of the executive board). In addition to this, Larissa Fleischer and Emilio Scervo also make the Board of Management at Bugatti Rimac.
2 Rimac Technology To Supply EV Components
In the heat of the history-making partnership, Rimac Group is birthing a new company, Rimac Technology, which will be owned wholly by Rimac Group. The new company will be tasked with the job of developing, manufacturing, and supplying battery systems and drivetrains.
Rimac already supplies hybrid battery systems to Aston Martin for the Valkyrie, to Koenigsegg for the Regera, and Jaguar for the E-type Zero. With these high-profile automakers already trusting the brand, Rimac will continue to provide electrical solutions to its customers through the new company which will be run independently.
1 A Clean Future
As carmakers add more electric vehicles to their lineup, it is clear that the future of the auto industry no longer lies in large gasoline engines. While emission standards are getting higher and regulations are getting stricter, the price of gas is also rising, leading to a growing dislike for gas guzzlers.
The Bugatti Chiron, currently relying on a W16 combustion engine for stellar performance, will not be hurt by a jolt of electricity. With the world moving steadily towards cleaner energy, we won't have to wait too long before we see an all-electric Bugatti.