VW Group to transfer control of Bugatti to Porsche; possibility to form JV with Rimac

During the annual media conference of the Volkswagen Group, the board chairman Herbert Diess confirmed the switching of Bugatti to Porsche. It will also observe a probable alliance between Porsche and the Croatian EV automaker Rimac. Last year, the review program of the company already listed a few brands, but finally it made clear that Bugatti remains under the Volkswagen Group.

It isn’t true that Bugatti will be transferred to Rimac. Porsche is currently planning for a partnership with Rimac and discussions are being held. Porsche will take notice of every aspect, as revealed by Diess.

Earlier, the news came that Bugatti’s ownership will be given to Rimac through Porsche, with the latter having majority stakes in Croatian car-making company. This is true to some extent, with the recent figures indicating a sharp rise of Porsche’s shareholding in Rimac. In September 2019, the company increased its percentage from 10% to 15.5%, and now the statistics are going to 24%.

It remains to be seen what lies in the fate of Bugatti as a different report claims that the Croatian automaker will take charge of the brand in a deal for selling out more shares to Porsche. However, Diess confirmed that Bugatti will remain within its parent company with the greater involvement of Rimac.

Does it hint at the potential joint venture over Bugatti that could involve splitting the shares equally between Porsche and Rimac? It’s still unclear as to what could be the next big move. Diess also stated that the entire matter is yet to be finalised. In the meantime, there will be a transition responsibility of Porsche to manage Bugatti. Also, there will be a probable joint venture between Porsche and Rimac, where the former will get minor shareholdings.

Under the proposed joint venture by the Volkswagen Group, Bugatti cars might switch its operation from combustion-engine to electric supercars, using the latest technology battery and drivetrain developed by Rimac. It is somewhat related to Diess as Volkswagen Group is going through a significant remodelling with an emphasis on electric mobility and renewed volume production.

Diess further elaborated that the purpose of giving the responsibility of Bugatti to Porsche within the Volkswagen Group is to provide a better environment. It will get a strong backdrop in Wolfsburg in the volume segment. It is expected to have similar synergies for both the Volkswagen brand in terms of carbon fibre dashboard and high-performance batteries.

Also read: Audi to take command of Bentley; Lamborghini and Ducati will stay in the VW group