Bugatti Is On The Way To The Electric Era

The overall strategic shift of the auto industry towards electric vehicles requires some sacrifice, and that might be in the segment of big and powerful combustion engine vehicles, such as Bugatti. Volkswagen AG VWAGY announced it is selling its supercar business, and the new owners will be Croatian electric car startup Rimac Automobili and Volkswagen's luxury sportscar unit Porsche AG. This joint venture should ensure Bugatti's transformation into the electric era, so it remains the elite of the super high-performance sports car world.

Rich History

Bugatti is one of the most recognized names among super luxury cars. After the founder Ettore Bugatti died, the company nearly disappeared in 1952. Italian businessman Romano Artioli bought it and revive it in 1987, as the maker of super-luxury sports cars available only in limited numbers. Volkswagen bought the company in 1998 and continued with the company's traditions.

Ferdinand Piëch, Volkswagen's chairman of the executive board from 1993-2002 and chairman of the supervisory board from 2002-2015, inspired the development and production of many famous models in the Volkswagen Group, including Audi Quattro, Porsche 911, and the Bugatti Veyron, the fastest legal car at the time. Piëch was the grandson of Ferdinand Porsche, founder of the Porsche company, and the designer of the Volkswagen Beetle.

Deal With Rimac Automobili

First of all, Rimac Automobili will be transformed into a holding company named Rimac Group, with two business units: Rimac Technology and Bugatti Rimac. Rimac Technology is an already established business that will continue to supply other automakers with its EV technology. Bugatti Rimac will hold the hypercar business which will continue with the production of both all-electric Rimac Nevera and Bugatti Chiron. Of course, it will develop all the future models, including the electric Bugatti models.

Rimac will be the shareholder with 55% ownership of the new company, while the rest will be held by Porsche AG. Porsche will also keep its 24% ownership in Rimac itself. Mr. Rimac will be the CEO of the joint company. The headquarters will be in Croatia, as well as Rimac's production of EV technology and Rimac car models. Bugatti's production will traditionally remain in Molsheim, France, close to the border with Germany.

Future Plans

The new company has some big plans regarding the new Rimac campus in Sveta Nedelja near Zagreb. This is where the production and development of components for Bugatti will take place in the future.  This will also be the group's new headquarters and it will be worth 200 million euros and occupy 100,000 square meters. The expected year of completion is 2023, and once it is opened, it will employ 2,500 experts.

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