Published on July 6th, 2021 | by Subhash Nair0
A Bugatti-Rimac Alliance Has Officially Formed With Porsche Presiding
Bugatti and Rimac form a new alliance for a shared electric future.
It’s crazy to think that just 10 years ago, Mate Rimac was just a one-man show. Today, Rimac Automobili and Bugatti, one of the oldest and most prestigious living car brands have combined forces. A new company called Bugatti Rimac LLC has just been formed with the purpose of researching and developing future vehicles for both brands. That also means that Bugatti and Rimac are still being treated as two separate marques.
In fact, the new ownership structure is a little bit complicated. Here’s how it looks like from a step back.
Both car brands are parked under the new Bugatti Rimac LLC entity, which is led by Mate Rimac, and co-owned by Porsche (45%) and Rimac Group (55%). Meanwhile, Porsche still has an interest in the Rimac Group as a whole. It began investing in Rimac in 2018, with its stake being increased over the years to the current 24%. Rumours of this spinning off of the Bugatti brand began circulating in late 2020.
Both car companies will continue to produce cars in Zagreb, Croatia, and Molsheim, France respectively. However, Bugatti Rimac will eventually be headquartered in the upcoming Rimac Campus. This is a €200M, 100,000m2 technology centre due to open in 2023 with 2,500 staff.
Here’s the press release with more information.
Today, Rimac Automobili announces another major milestone in its history, as it combines forces with the iconic automotive brand, Bugatti Automobiles, to create a new automotive and technological powerhouse.
In just 10 years, Rimac Automobili has progressed from one-man garage start-up to announcing a new company with one of the world’s most iconic car brands to create Bugatti Rimac d.o.o. (in English – LLC).
In an industry evolving at ever-increasing speed, flexibility, innovation and sustainability remain at the very core of Rimac’s operations. The Croatian-based brand has proven that it can not only keep up but be the trailblazer, setting the performance and technological benchmark for others. Uniting Rimac’s technical expertise and lean operations with Bugatti’s 110-year heritage of design and engineering prowess represents a fusion of leading automotive minds.
As part of the deal, the newly-formed Rimac Group will be the major shareholder with a 55% stake. Mate Rimac will retain his original shareholding in Rimac Group at 37%, with Porsche at 24%, Hyundai Motor Group doing the same at 12% and other investors at 27%. The development, production and supply of battery systems, drivetrains and other EV components that Rimac is known for and trusted by many automotive manufacturers will be separated into a new entity – Rimac Technology, which will be 100% owned by the Rimac Group. Rimac Technology will remain an independent company working with many global car manufacturers.
Mate Rimac will lead the new company. As CEO of Rimac Group, he will run both Bugatti Rimac and the new division, Rimac Technology. Bugatti and Rimac will both continue as separate respective brands, retaining existing production facilities and distribution channels. Bugatti Rimac represents the company that will develop the future of both Bugatti and Rimac vehicles, by joining resources and expertise in research and development, production, and other areas.
Rimac Group will continue to innovate, creating both its own hypercars, as well as developing systems and technologies for many global OEMs. Such innovative technology can also be deployed in future Bugatti and Rimac models.
Both brands will continue to operate independently, with Rimac Automobili retaining its current premises on the outskirts of Zagreb, Croatia and Bugatti production continuing in Molsheim, France.
In time, Bugatti Rimac’s global headquarters will be situated at the recently announced Rimac Campus, also serving as the home of Rimac Technology. The €200M, 100,000m2 campus, due to open in 2023, will be the base for all research and development of future Rimac and Bugatti hypercars. With high-tech innovation at its core, the state-of-the-art site will accommodate 2,500 like-minded people driven by curiosity and a desire to push things to the absolute limit.