Rimac Automobili writes success story for Croatia

Rimac Automobili deal to acquire Bugatti still unknown

ZAGREB, Sept 17 (Hina) – “We cannot comment on the speculation,” the Rimac Automobili company said on Thursday following media reports that the Croatian carmaker from Sveta Nedelja will take over the famous Bugatti brand.

The media received a similar response from Bugatti as well. Entrepreneur Mate Rimac, Bugatti and Volkswagen declined to comment to Reuters on the information about the sale.

The news about the possible takeover of Bugatti followed after Mate Rimac last week announced at the Entrepreneurial Mindset conference “some new investments” that would resound in the business world.

Porsche acquired a 10% share in Rimac Automobili in 2018, and bought another 5.5% in 2019. Other investors in the Croatian company include Hyundai, Jaguar, Koenigsegg and Magne, the magazine recalled. The Chinese battery producer Camel Group and a Chinese investor are also shareholders.

Citing unnamed sources familiar with the talks, Manager Magazin said that Volkswagen’s committees would discuss the sale of Bugatti to Mate Rimac this year, as quoted by Reuters, and the news has also been carried by domestic media outlets today.

“Rimac has developed an electric supercar platform, which he supplies to other carmakers, including Automobili Pininfarina. Volkswagen unit Porsche owns a stake in Rimac.

“Bugatti (…) will likely be transferred to Rimac via Porsche, in exchange for a bigger share in Europe’s answer to Tesla. Sources say VW executives approved the deal last week, but it has yet to be signed off by the supervisory board,” British Car Magazine speculates.

Volkswagen no longer wants to spend money and manpower on Bugatti, and wants to devote all resources to the massive investment programme in electrification, digitalisation and autonomous driving, said Car Magazine.

Porsche acquired a 10% share in Rimac Automobili in 2018, and bought another 5.5% in 2019. Other investors in the Croatian company include Hyundai, Jaguar, Koenigsegg and Magne, the magazine recalled. The Chinese battery producer Camel Group and a Chinese investor are also shareholders.

“While the true value of Rimac is yet to-be-determined by an IPO, Bugatti is probably worth €500m in today’s depressed market. But perhaps there is no need for any money to flow at all in the deal,” said the magazine.

Rimac Automobili today “employs more than 600 people who specialise in electromobility, battery development and performance electronics,” Car Magazine said.

“Rimac may be dubbed Europe’s Tesla, but while Elon Musk’s firm has churned out more than 600,000 Model 3 and Y cars in the last three years, the Croatians have made but a handful of electric hypercars. The first was the Concept One, introduced in 2011 and of which only eight units were made. The latest is the awesome 1914bhp C-Two coupe which has yet to enter production,” Car Magazine added.