Joint Venture Operated By Porsche, Rimac May Run Bugatti

Volkswagen Group CEO Herbert Diess has confirmed plans to place responsibility for Bugatti in a joint venture operated by Porsche and Croatian electric vehicle specialist Rimac Automobili.

Recent reports had suggested VW might sell a controlling interesting in the French hypercar maker to Rimac. Diess has denied this.

During the Volkswagen Group’s annual media conference in Wolfsburg, Germany, he says responsibility for Bugatti will be transferred to Porsche, which would then discuss a possible joint venture with Rimac.

“Transferring (Bugatti) to Rimac isn’t true,” Diess says. “Porsche is currently preparing a partnership that’s going to be under discussion with Rimac, and Porsche will be taking care of that.

“The whole thing isn’t yet finalized. What we want to do is transition responsibility of Bugatti to Porsche, and Porsche in all probability will establish a joint venture with Rimac, with a minority share of Porsche.”

Porsche recently increased its stake in Rimac from 15.5% to 24.0% in a deal worth €70 million ($83 million).

Diess says the decision to move responsibility for Bugatti within the Volkswagen Group to Porsche will strengthen its operations.

“We believe that Bugatti will get an environment that’s stronger than being here in Wolfsburg in the volume segment,” he says, adding, “We have more synergies (between Porsche and Bugatti) over there, such as carbon fiber bodies and high-performance batteries.”