German sportscar manufacturer, Porsche, which is also a member of the Volkswagen Group, is currently holding discussions with popular Croatian electric supercar producer Rimac Automobili on a partnership that will manage the Bugatti brand.

VW Online Media Conference Revealed Discussions With Rimac

According to Herbert Diess, who is currently the chairman of the Volkswagen Group management board, “Porsche is currently preparing a partnership that’s going to be under discussion with Rimac, and Porsche will be taking care of that. The whole thing isn’t yet finalized. What we want to do is to transition responsibility of Bugatti to Porsche, and Porsche in all probability will establish a joint venture with Rimac, with a minority share of Porsche.”

The rumors about a possible acquisition of Bugatti by Rimac have been circulated by the press since September 2020. However, Diess was quick to squash the rumor. Earlier this month, Porsche increased its stake in Rimac Automobili from 15.5% to 24% after investing an additional $83 million.

Diess believes that the decision to move responsibility for Bugatti within the Volkswagen Group to Porsche will strengthen its operations. According to him, “We believe that Bugatti will get an environment that’s stronger than being here in Wolfsburg in the volume segment. We have more synergies over there such as carbonfibre bodies and high-performance batteries. Bugatti is in better hands over there.”

Besides Porsche, shareholders in Rimac are China’s Camel group with 14 percent, Hyundai Motor with 11 percent, and Kia with 2.7 percent. If Porsche’s plan goes well, the strategic investment could be completed within three months, and Rimac could raise between $157 million and $181 million. Porsche’s stake in Bugatti could rise to be almost half if the deal is successful.

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Rimac’s Response

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Mate Rimac, the Croatian innovator, entrepreneur and founder of the electric hypercar company Rimac Automobili and Greyp Bikes responded to the post by saying, “While it is true that we are discussing further expansion of this collaboration that will lead to increase of Porsche’s stake in Rimac Automobili, some media have falsely reported that Porsche would take over 50% or nearly 50% of the company. Porsche’s stake will increase but nowhere near to 50% and Rimac will remain independent with many industry customers that are not our shareholders.”

Mate Rimac's statement infers that Porsche may not get up to 50 percent of the company. Apart from Porsche, Rimac also has partnerships with Aston Martin, Koenigsegg, Renault, and Hyundai.

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