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  • Updated: March 08, 2021

Porsche Raises Stake In Rimac To Boost Bugatti Sales

Porsche Raises Stake In Rimac To Boost Bugatti Sales

Porsche AG, Volkswagen's luxury division has agreed to increase the company's stake in Croatian electric car manufacturer and supplier Rimac Automobili, a move that could pave the way for parent Volkswagen AG to sell its ultra-luxury Bugatti brand to the Croatian electric supercar maker.

Porsche's stake in Rimac was raised to 24 percent from 15 percent on Monday after agreeing to invest another $84 million, now valuing the electric supercar maker at $947 million.

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“Rimac is excellently positioned in prototype solutions and small series,” Porsche AG finance chief Lutz Meschke said in a statement. “Rimac is well on its way to becoming a Tier 1 supplier for Porsche and other manufacturers in the high-tech segment... Our investments in the company Rimac have proved to be absolutely right. The company has developed very well technologically. We expand our cooperation step by step.”

Bugatti, which builds high-priced models including the $5.8 million Divo, sold only about 80 vehicles last year. Its 1,500-horsepower cars are increasingly out of line with VW’s electrification drive costing the group billions.

It is a known fact Bugatti's parent company Volkswagen Group will decide in the first half of the year, with Porsche CEO and member of the management board of parent Volkswagen AG, Oliver Blume, recently suggesting Rimac could play a role regarding Bugatti's future. Should the deal materialize, there's a big chance we'll see fully electric Bugatti hypercars utilizing Rimac's know-how that would follow electrified Porsche models taking advantage of what Mate Rimac and his team have been able to develop in a short time.

Rimac, known for electric hypercars that boast as much as 2,000 horsepower, has been gradually expanding engineering operations and supplies high-tech parts for electric vehicles to automakers. The company headquartered near Zagreb was founded in 2009 and now employs almost 1,000 people.

Rimac also stated strongly that they intend to remain independent despite the Porsche's increased ownership. "Porsche's stake will increase, but nowhere near to 50%, and Rimac will remain independent with many industry customers that are not our shareholders or investors," its founder said shortly before Porsche's investment was made public.


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