Friday, 9 July 2021

Porsche Controls 58.2% of Rimac Company Following Spectacular Bugatti Deal

July the 9th, 2021 - The incredible Mate Rimac Bugatti deal has blown the myths about not being able to succeed in Croatia straight out of the water. If he hadn't managed to convince you of that before, which is difficult to believe, he certainly has now. This remarkable Croatian entrepreneur's dogged determination is tireless, and Porsche has become even more deeply involved in the Rimac company.

As Poslovni Dnevnik/Ana Blaskovic writes, drowning in the proverbial Croatian sea of ​​gloomy news about the failure of the vaccination rollout amid the pandemic and a new wave of mutated coronavirus posing a potential threat, the news that young entrepreneur Mate Rimac has taken over the cult figure of the automotive world, Bugatti, resounded like a nuclear bomb.

The historical success of the Rimac company, which operated out of a mere garage back in 2009, is astonishing. Very few people believed in the company's plans to create hypercars right here in Croatia, where cars are imported but not produced, but it turned out to be an astronomical success. The business side of the story, however, went under the radar.

The merger of Rimac Automobili and Bugatti Automobiles created a joint venture, known as Bugatti Rimac (in which the newly formed Rimac Group will hold a majority stake), which will be (in)directly controlled by Porsche with 58.2 percent ownership, while Mate Rimac will remain at the forefront, but with a minority stake of 20.4 percent.

The transaction isn't accompanied by cash flow as such but is a matter of exchanging shares, which reflects the consequent rearrangement of the structure of the Rimac company. With this move, Rimac's startup actually ceases to be a startup and is being additionally integrated within the umbrella of the VW Group, of which Porsche is of course a part. Rimac Automobili is becoming the Rimac Group (divided into Bugatti Rimac and Rimac Technology) in which Mate Rimac formally holds the largest single stake of 37 percent, Porsche 24 percent, Hyundai 12 percent and other shareholders 27 percent.

The Rimac Group will have a 55 percent stake in the Bugatti Rimac package, which includes the separate brands Bugatti Automobiles and Rimac Automobili. The remaining 45 percent of the shares of the joint venture are held by the German manufacturer, which has been following the Rimac company financially for the last three years.

Despite these figures, which lean significantly in the favour of the German investor, it has been agreed that Mate Rimac will remain at the helm, as the CEO of the Rimac Group he will lead the business of Bugatti Rimac and the new company Rimac Technology. It's here that the core business that broke through in the automotive industry remains - the development, production and delivery of battery systems, powertrains and other EV components. All of the above will be 100 percent owned by the Rimac company.

“What's important to note is that the Rimac Group is managed by director Mate Rimac. The owners participate in the management of the company through the Supervisory Board,'' stated an explanation regarding German shares. They added that “Rimac Group is the largest shareholder of Bugatti Rimac d.o.o. where Mate Rimac is also the director. Mate is also the director of Rimac Technology, which is 100 percent owned by the Rimac Group.''

Car buffs who follow such news aren't too surprised by this outcome, although it is almost certain that there was resistance to such a solution. The new Rimac company remains under the control of a young businessman who, despite all the objective obstacles to doing business in Croatia, raised the company from scratch in an industry that is markedly capital intensive. Only twelve years has passed from the aforementioned garage adventures to the presentation of the stunning Nevera, the fastest electric hypercar in the entire world. 

The fact that all of the above was done at all is exceptional, but knowing it has been done by a Croat, in Croatia, is bordering on miraculous.

For more, follow our dedicated business section.

Thursday, 8 July 2021

International Media Praise Historic Mate Rimac Bugatti Deal

July the 8th, 2021 - The amazing Mate Rimac Bugatti deal which has dominated the Croatian media space since its announcement has earned showers of praise from across the world as this remarkable Croatian entrepreneur continues to make automotive history.

As Poslovni Dnevnik writes, the incredible news of the Mate Rimac Bugatti deal has reached the eyes and eyes of the world's media and attracted even more recognition for this Livno-born entrepreneur who is schooling the government in how investments are attracted, following a huge cash injection from no less than Porsche.

CNN states that the Volkswagen Group and Porsche have agreed to create a new company that merges Rimac Automobili, a Croatian company based in Sveta Nedelja near Zagreb that produces electric supercars, with the famous Bugatti.

The CNN article states that Rimac has so far specialised in developing technology for electric cars, including batteries. According to CNN, companies such as Jaguar, Aston Martin and the Swedish supercar manufacturer Koenigsegg are among Rimac's well known clients. The publication also cites Rimc's collaboration with the Italian Pininfarina, a company that was once known for designing for Ferrari.

The Financial Times describes the Mate Rimac Bugatti deal as "a deal that cements Rimac's position as an established force in the automotive industry," Index reports.

The fact that Bugatti will be controlled by an electric car specialist is a big step forward for Bugatti, a company known for its loud hypercars and 16-cylinder engines. The fact that the takeover is by someone from Croatia is astonishing to most, as the country is far from known for even dipping its feet into the car world, at least until Mate Rimac put it on the map.

Advances in battery technology have led to speeds beyond the reach of even the most advanced vehicles powered by internal combustion engines, according to the Financial Times, following the example of Rimac's amazing Nevera, which should be the fastest production car ever produced.

According to the Financial Times, Rimac said that by the end of the decade, Bugatti will produce a fully electric car, but until then it will focus on hybrid models.

For more, follow our business section.

Monday, 5 July 2021

Huge News: Bugatti becomes Bugatti Rimac with Headquarters in Croatia!

July 5, 2021 - Mate Rimac's company Rimac Automobili has become the majority owner of Bugatti, and Rimac Automobili becomes Rimac Group divided into two companies - Bugatti Rimac and Rimac Technology.

This was announced this afternoon by Rimac Automobili. This confirmed the speculations that Rimac would take over Bugatti, a famous company known for super-luxury cars, reports Index.hr.

Mate Rimac accompanied the announcement of this news on Facebook with a photo showing Nevera, Bugatti, and Porsche on the runway.

More information about this great event will be announced tonight in Dubrovnik. In addition, speeches by Mate Rimac, founder and CEO of Rimac Automobili, Oliver Blume, CEO of Porsche, and Lutz Meschke, vice president and chief financial officer of Porsche, have been announced.

 

Rimac Automobili says it is at a "turning point in the company's history," and the move, which became public today, is described as "merging with the icon of car brands, Bugatti Automobiles, into a new automotive and technology company."

In just 10 years, Rimac Automobili has progressed from a startup and one man in a garage to create a new company Bugatti Rimac d.o.o., in collaboration with two of the most famous and powerful car brands in the world - Porsche and Volkswagen Group, the statement said.

This Croatian brand has proven that it can keep up and open new vistas, imposing performance and technology standards on others. Combining Rimac's technical knowledge and efficient business with 110 years of design tradition and a strong Bugatti brand is leading to the emergence of the most important company in the hypercar market, Rimac Automobili announced.

Rimac Group will be the largest shareholder of the new company Bugatti Rimac d.o.o., with a share of 55%. Mate Rimac will retain its existing stake in the Rimac Group of 37%, Porsche remains at 24%, Hyundai Motor Group at 12%, and other investors at 27%. The development, production, and delivery of battery systems, powertrains, and other EV components, for which Rimac is known and gained the trust of many car manufacturers, will be separated into a new business entity - Rimac Technology - which the Rimac Group will wholly own. Rimac Technology remains an independent company that cooperates with many global car manufacturers, according to Rimac Automobil, from which they also sent an infographic of the new ownership structure.

Mate Rimac will head the new company. As CEO of the Rimac Group, he will lead Bugatti Rimac and the new company Rimac Technology. With this, Mate Rimac continues to manage all business segments of the Rimac Group, which now includes Bugatti. Bugatti and Rimac continue as separate brands, retaining existing production facilities and distribution channels, while the headquarters and all development for both brands will be in Croatia.

The Rimac Group will continue to innovate, create its own hypercars and develop systems and technologies for many of the world's car manufacturers. Such innovative technology will be applied in future Bugatti models, Rimac Automobil said in a statement.

Both brands, Rimac Automobili and Bugatti, will continue to develop car models within the new company. In the future, Bugatti Rimac's global headquarters will be located at the new Rimac campus, which will also be the headquarters of Rimac Technology, as well as the production of technology and components for cars of both brands, while the assembly of the Bugatti model will continue in Molsheim, France, thus continuing to use the historical location, which is inseparable from the Bugatti brand. The 200m-euro campus, with a building area of 100,000 m2, which should open in 2023, will be the base for all research and development of future Rimac and Bugatti hypercars. Conceived as the core of high-tech innovation, the Rimac campus will bring together 2,500 people driven by shared curiosity and a desire to reach extremes, the statement said.

Commenting on today's announcement, Mate Rimac, founder and CEO of Rimac Automobili, said: "This is an exciting moment in the short but turbulent history of Rimac Automobili. We have gone through so much in so little time, but this new project takes things to a whole new level. Rimac and Bugatti complement each other perfectly. As a young, agile, and fast automotive and technology company, we have won the trust of our partners and a strong position in the high-performance electrical technology industry.

With Nevera, we have also proven that we can develop and produce outstanding hypercars, which are fast and exciting, and high quality. Bugatti has more than a century of experience in engineering excellence and one of the most impressive car lines.

We recently unveiled our latest hypercar, the Nevera, which was met with positive reactions from professional media and automotive enthusiasts worldwide. I am therefore extremely excited about the potential that is combining the knowledge, technology, and value of these two amazing brands in creating some exceptional projects. In addition to creating new and exciting cars, we want to create an extremely successful and profitable company, which will be successful for the next 100 years," said Rimac.

Oliver Blume, CEO of Porsche AG, said:

“We combine Bugatti’s strong expertise in the hypercar business with the enormous innovative power of Rimac in the up-and-coming field of electromobility. In this joint venture, Bugatti brings its brand of rich tradition, icons, a base of loyal customers, and a global network of dealerships. In addition to technology, Rimac is introducing a new development and organizational approach."

Lutz Meschke, Deputy Chairman of the Management Board and Member of the Management Board for Finance and Informatics of Porsche AG, said: "We bought our first stake in Rimac three years ago and have since increased it successively. This has allowed us to build a close relationship with Mate and his highly innovative team. We now benefit from the investment. Rimac helps us with his knowledge to successfully introduce an emotional and important brand of the Group into the future. I am very proud and happy that we have completed this joint investment despite many challenges. This is an important day for Bugatti, Porsche, and the entire Volkswagen Group."

For more about business in Croatia, follow TCN's dedicated page

Friday, 19 March 2021

VW Boss Clarifies Info Surrounding Alleged Rimac Bugatti Purchase

March the 19th, 2021 - Volkswagen's boss has spoken out about the information which has been circulating for months now about the alleged Rimac Bugatti purchase. Rumors have been doing the rounds for some considerable time, and speculation has been rife.

As Novac writes, rumours about an alleged Rimac Bugatti purchase, more specifically that Rimac Automobili would take over Buggati, have been flying around for a while now. The main body of these rumours was how Volkswagen could restructure the business of its entire concern by merging Rimac, Porsche and Bugatti into one unit which would work together to produce supercars. Now, for the first time since the proverbial rumour mill began operating, Volkswagen's Herbert Diess has spoken out, writes Seebiz.

He explained the fate of this reorganisation in a conversation during the annual VW press conference. Currently, Bugatti is in the phase of moving under the cap of Porsche, which will become its umbrella company. At the same time, Porsche increased its stake in Rimac Automobili from 15.5% to 24%. Both moves go in the same direction, and that is the creation of a separate unit specialising in advanced technologies and supercars that would take advantage of the synergistic effect of all those involved.

After the merger of Bugatti with Porsche, in the form of a partnership, talks will begin with Rimac, which will also be taken care of by Porsche, explained Diess, confirming that the VW group had absolutely no plans to "sell Bugatti to Rimac".

Instead, the responsibility for Bugatti will be shifted to Porsche, which could then form a joint venture with Rimac, in which Porsche will hold a minority stake. That joint venture could include Bugatti, so Rimac Automobili and Bugatti could indeed be merged.

These were roughly the expectations when the information about the merger of Bugatti Rimac with Automobili first appeared in Croatia, and now it has been officially confirmed for the first time.

The exchange of ownership shares, the transfer of control to Porsche and then the creation of a new joint venture - this is what is set to follow if Diess' plan ends up being realised. Nothing has been confirmed or agreed on yet, but now at least the direction in which Volkswagen's department for supercars and modern sports electric vehicles will develop is known.

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