The luxury sportscar unit of Volkswagen AG, the Wolfsburg-based German automotive industry behemoth that had sold off the highest number of passenger vehicles in 2018 and 2019 – before the pandemic had wrecked havocs into the global economy – despite a weakening global auto market, Porsche AG, had told last week that the VW unit had agreed to form a JV with a Croatian automaker Rimac Automobili which would also include the Volkswagen AG’s sportscar brand Bugatti, suggesting a sagacious move to strengthen up the German carmaker’s footprints into a fiercely competitive hypercar market.
Besides, Porsche AG was also quoted saying in a statement that its joint venture with Croatia’s Rimac Automobili would more likely to launch by the fourth quarter of the year, while the JV, named as Bugatti-Rimac, would be a majority 55 per cent-owned by Rimac.
Concomitantly, according to the terms of the deal, Volkswagen had agreed to transfer its hyper-car unit Bugatti into the JV, while Rimac Chief Executive Officer Mate Rimac would Chair the venture. Nevertheless, Volkswagen Chief Herbert Diess had told in March this year that the German automotive industry Goliath’s Porsche unit would more likely to be engaged in a joint venture with Rimac, while the venture would involve VW’s hypercar unit Bugatti and the Wolfsburg-based auto giant might not be able to secure a majority stake in the venture.
VW’s Porsche AG, Croatian Rimac set up JV involving hypercar unit Bugatti
Meanwhile, adding that the JV would initially produce two hypercar models such as the Bugatti Chiron alongside an all-electric Rimac Nevera, Porsche AG Chief and VW board member Oliver Blume said, “We are combining Bugatti’s strong expertise in the hypercar business with Rimac’s tremendous innovative strength in the highly promising field of electric mobility”.
Nonetheless, Porsche AG had reaffirmed that all Bugatti models would be produced at the brand’s home-factory at Molsheim, France.