Photo: Rimac Automobili
You might have read that title twice, maybe even three times. That's because even though each word in there makes perfect sense, once you put them all together in this particular order, it stops sounding like something you thought you would hear during this lifetime.
We all know Bugatti. The brand's resurgence under Volkswagen's tutelage was the stuff of legends, with the Veyron setting new standards in terms of power, luxury, and opulence. It was a car built for sheiks and oligarchs and it wore that tag with pride despite the fact it came from a brand owned by the "people's car".
With their ridiculously big engines employing the unusual W16 layout - essentially two V8s stacked on top of each other - and quad-turbos, the modern Bugatti models have been the epitome of automotive extravagance since their rebirth in 2005, and it didn't look like that would change any time soon.
A report from British publication Car that came out today claims that Bugatti should continue life in the same vein, only with a few changes and under different custody. The scoop says that Volkswagen is ready to sell its most luxurious brand to Rimac, the Croatian electric hypercar-maker that started life by installing an electric powertrain in a beat-down BMW only a decade ago.
This whole thing sounds a bit ridiculous at first glance, but it actually makes more sense than one would imagine. First of all, the new Volkswagen management wouldn't mind getting rid of Ferdinand Piech's pet projects, with Bugatti being the most obvious of them. CEO Dr. Herbert Diess would like to focus on the current market trends, and W16 quad-turbo hypercars are not among them.
The big three are electrification, digitalization, and autonomous driving, and Rimac is doing quite well in at least two of them. It's not like that's any news to VW: Porsche already owns a 15.5% share in Rimac Automobili, showing the Germans had already recognized the company's potential long before there was any mention of a trade between them.
The report states that Bugatti could make the switch without any money changing hands, with Rimac Automobili conceding further shares to Porsche instead. Exactly how much is still unknown, but with founder and CEO Mate Rimac holding 51 percent, anything is possible.
As for Rimac, the Croatians would gain access to a lot more than just the rights to a brand name and the vehicle it makes. The biggest issue now for the emerging company is the manufacturing process and acquiring Bugatti should offer an important boost in the shape of the brand's facilities in Molsheim. It would also show intent on Rimac's part to make the jump from the "promising startup" to "important market player," something the company seems perfectly up to.
That being said, we're not going to pretend this piece of news wasn't a complete surprise, but as mentioned earlier, it does start to make a lot more sense once you delve into what each of the two parties has to gain from it. One tightens the ties with a promising supplier and developer of EV powertrain parts (and Rimac's software isn't bad either) while the other gains the much-needed manufacturing capabilities to ascend to the next level in the industry. Now, let's just wait and see if there's any truth to it.
With their ridiculously big engines employing the unusual W16 layout - essentially two V8s stacked on top of each other - and quad-turbos, the modern Bugatti models have been the epitome of automotive extravagance since their rebirth in 2005, and it didn't look like that would change any time soon.
A report from British publication Car that came out today claims that Bugatti should continue life in the same vein, only with a few changes and under different custody. The scoop says that Volkswagen is ready to sell its most luxurious brand to Rimac, the Croatian electric hypercar-maker that started life by installing an electric powertrain in a beat-down BMW only a decade ago.
This whole thing sounds a bit ridiculous at first glance, but it actually makes more sense than one would imagine. First of all, the new Volkswagen management wouldn't mind getting rid of Ferdinand Piech's pet projects, with Bugatti being the most obvious of them. CEO Dr. Herbert Diess would like to focus on the current market trends, and W16 quad-turbo hypercars are not among them.
The big three are electrification, digitalization, and autonomous driving, and Rimac is doing quite well in at least two of them. It's not like that's any news to VW: Porsche already owns a 15.5% share in Rimac Automobili, showing the Germans had already recognized the company's potential long before there was any mention of a trade between them.
The report states that Bugatti could make the switch without any money changing hands, with Rimac Automobili conceding further shares to Porsche instead. Exactly how much is still unknown, but with founder and CEO Mate Rimac holding 51 percent, anything is possible.
As for Rimac, the Croatians would gain access to a lot more than just the rights to a brand name and the vehicle it makes. The biggest issue now for the emerging company is the manufacturing process and acquiring Bugatti should offer an important boost in the shape of the brand's facilities in Molsheim. It would also show intent on Rimac's part to make the jump from the "promising startup" to "important market player," something the company seems perfectly up to.
That being said, we're not going to pretend this piece of news wasn't a complete surprise, but as mentioned earlier, it does start to make a lot more sense once you delve into what each of the two parties has to gain from it. One tightens the ties with a promising supplier and developer of EV powertrain parts (and Rimac's software isn't bad either) while the other gains the much-needed manufacturing capabilities to ascend to the next level in the industry. Now, let's just wait and see if there's any truth to it.
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