Rimac Planning to Buy Bugatti?
Croatian supercar firm Rimac Automobili is reportedly in the process of acquiring Bugatti from Volkswagen. While rumors had been swirling that VW might offload a few of its brands in a bid to focus on electrification and emissions compliance, this is is the first time we’ve heard credible rumblings about real action being taken.
Considering the space Rimac occupies, adding the formerly French Bugatti brand also makes some amount of sense. We’d be a lot more skeptical if founder Mate Rimac was alleged to be making a move on SEAT because he suddenly found a passion for designing economy cars. But the prospective tie-up is more complicated than it seems at first blush. Volkswagen Group’s Porsche actually owns a 15-percent stake in Rimac so it can tap into some of its sweetest technical equipment for the purpose of building EVs.
We’re guessing Volkswagen is considering this because it has already lost a substantial amount of money this year and has to continue spending to progress the development of electric and/or autonomous vehicles (on which it has bet the farm). It also doesn’t make much sense to own Bugatti when it already has Porsche, Lamborghini, and Bentley — especially if the rumors that VW lost nearly $6 million on every Bugatti Veyron sold were true.
Deceased VW patriarch Ferdinand Piëch went well out of his way to acquire Bugatti, noting that it was more for his own pleasure than anything else. The ultra-premium brand was the fat ruby in Volkswagen’s crown as it went from the cusp of bankruptcy to the largest automaker in the world under Dr. Piëch’s leadership. But he’s no longer around to fight for one of his favorite projects, making it a probable sell as the company tightens its belt a few notches. If the Porsche-Piëch family can benefit from the existing corporate connections, we doubt they’ll mind.
[Image: Bugatti]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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I believe rimac will move towards introducing a joint product between the two companies that showcases the history and workmanship of bugatti alongwith the modern electric power, and quipment of rimac. It will be a hybrid boasting upwards of 1600hp easily and will contend for the fastest car in the world against Koenigsegg. They will surely downsize their engine from the w16 that bugatti is currently using since it is a VW engine architecture derived from VR6.
I have heard a rumour that VW is looking to buy some of Tata motors shares using Bentley and VAG tech in Part exchange. Makes sense Bentley gets folded in with Range Rover and Jaguar whilst JLR and Audi can share components. Clever move if true.