Rimac takes over Bugatti from VW

[FCX5]

https://www.theverge.com/2021/7/5/22...quisitoin-deal

[chassis]

Too bad. VAG is a global powerhouse and was doing cool things with Bugatti. After the initial Rimac deal excitement wears off I expect an underfunded and anemic Bugatti in 5-10 years.

[GuidoK]

Originally Posted by chassis

After the initial Rimac deal excitement wears off I expect an underfunded and anemic Bugatti in 5-10 years.

I don't know. It could just as well go the other way.
There are 2 things Bugatti currently lacks:

1. innovation. If you compare Bugatti with it's main competitor Koenigsegg, Koenigsegg innovates much more and is a smaller company driven by 1 man.
If those last 2 facts are a factor that deterimines innovation, Bugatti might innovate more with Mate Rimac at the helm. Heck, Rimac itself is a very innovative company and imho more akin to Koenigsegg than to Bugatti.

2. Racing. VAG went to great length to recreate Bugatti's history when they re-erected the brand (even build a factory in france etc) but one thing they missed (the main thing imho) is that Bugatti was a brand that evolved and existed around racing (Bugatti even started selling cars to pay for its racing activities historically). With a new leader at the helm they might start racing again. I'd love to see a Bugatti team at Le mans

[BigHunk]

When i watched Carwow, Matt in Rimac Nevera was playing with Ferrari SF90 like it's f.... Corolla.

So Bugatti will see better days under Rimac innovations.

[Holset]

What i read it's actually Porsche that's taking over Bugatti because they own much of Rimac.
And in turn Porsche is owned by VW so now VW bought Bugatti for a second time or something haha!?

But i think Porsche is going to manage the the new brand BugattiRimac.

[FCX5]

Originally Posted by Holset

What i read it's actually Porsche that's taking over Bugatti because they own much of Rimac.
And in turn Porsche is owned by VW so now VW bought Bugatti for a second time or something haha!?

But i think Porsche is going to manage the the new brand BugattiRimac.

Rimac is owned 24% by Porsche and 12% by Hyundai and around 40% by Matt Rimac. So what you are saying about Porsche owning Rimac is not really true…but Porsche will have technically 58% of Bugatti-Rimac JV. But Porsche does not own Rimac. Not close…

https://www.autoweek.com/news/green-...ke-over-rimac/

[Red Bread]

Originally Posted by Holset

What i read it's actually Porsche that's taking over Bugatti because they own much of Rimac.
And in turn Porsche is owned by VW so now VW bought Bugatti for a second time or something haha!?

But i think Porsche is going to manage the the new brand BugattiRimac.

Porsche SE actually owns VW.

[IMG]https://www.brandingmag.com/wp-conte.../vwporsche.jpg[/IMG]

[Holset]

Originally Posted by FCX5

Rimac is owned 24% by Porsche and 12% by Hyundai and around 40% by Matt Rimac. So what you are saying about Porsche owning Rimac is not really true…but Porsche will have technically 58% of Bugatti-Rimac JV. But Porsche does not own Rimac. Not close…

https://www.autoweek.com/news/green-...ke-over-rimac/

I didn't say Porsche owned Rimac.

So I seems Porsche is getting most ownership over the Bugatti-Rimac brand?

[Holset]

Originally Posted by Red Bread

Porsche SE actually owns VW.

[IMG]https://www.brandingmag.com/wp-conte.../vwporsche.jpg[/IMG]

Are you shure about that?

As i remember a couple of years ago Porsche was close to get most ownership of VW but it turn the other way around in the end.

[FCX5]

Originally Posted by Holset

I didn't say Porsche owned Rimac.

So I seems Porsche is getting most ownership over the Bugatti-Rimac brand?

Actually Rimac has most ownership over Bugatti-Rimac. Since Porsche has a minority share in Rimac, they can be overridden by the others and Rimac can override Porsche. So Rimac, and by extension Mate Rimac has the most clout here. Porsche can't just dictate terms as they wish. This is a JV with Rimac as the biggest owner of Bugatti.

What I meant is that if the company were sold, Porsche with 45% ownership + 24 % of Rimac would get the largest share. However, as I said above, the other shareholders together can outvote Porsche in Rimac and Rimac can outvote Porsche at Bugatti. But I am guessing everyone is going in here as friends…almost certain that Bugatti will be electrified now.

[Holset]

Originally Posted by FCX5

Actually Rimac has most ownership over Bugatti-Rimac. Since Porsche has a minority share in Rimac, they can be overridden by the others and Rimac can override Porsche. So Rimac, and by extension Mate Rimac has the most clout here. Porsche can't just dictate terms as they wish. This is a JV with Rimac as the biggest owner of Bugatti.

Alright but what about this i the article?
A bit confusing this merger hehe.

On the surface, today's announcement means the new company, Bugatti Rimac, will be controlled 55 percent by Rimac, with Rimac founder Mate Rimac as CEO, and that Bugatti will control 45 percent. But remember that Porsche, which is owned by Volkswagen, and which also owns Bugatti, already had 24 percent of the Rimac Group, and now with 45 percent announced today owns more, right? Porsche chairman Oliver Blume and deputy chairman Lutz Meschke will both serve as supervisory board members at the new joint venture. So is this really an announcement that Porsche is now in charge of Rimac?

[FCX5]

Originally Posted by Holset

Alright but what about this i the article?
A bit confusing this merger hehe.

On the surface, today's announcement means the new company, Bugatti Rimac, will be controlled 55 percent by Rimac, with Rimac founder Mate Rimac as CEO, and that Bugatti will control 45 percent. But remember that Porsche, which is owned by Volkswagen, and which also owns Bugatti, already had 24 percent of the Rimac Group, and now with 45 percent announced today owns more, right? Porsche chairman Oliver Blume and deputy chairman Lutz Meschke will both serve as supervisory board members at the new joint venture. So is this really an announcement that Porsche is now in charge of Rimac?

The way it works with such ownerships is that Rimac is an entity and Porsche is another entity. The two entities have a JV called - Bugatti-Rimac. Where Rimac has 55% share and Porsche the other 45%. Porsche is a part owner of Rimac, but does not have enough votes to overrule the other shareholders in Rimac. So if Rimac as an entity votes a particular way when making a decision on Bugatti-Rimac, Porsche does not have the votes in the JV to overturn it. They can vote at most 45% if they are in disagreement with the other shareholders of Rimac. So Rimac is the controlling entity, not Porsche. The article makes that clear - based on the ownership structure.

Porsche as a significant owner in Rimac can influence Rimac and bring in other shareholders. But I believe Mate Rimac + Hyundai have enough votes in Rimac so that no other combination can over rule them….

So for now, Bugatti is in the hands of Rimac and Mate Rimac. Porsche is the major shareholder in the project. Through their share in Rimac and being the junior JV partner. FWIW, Porsche, if they wanted to control the company could have decided to go for 50-50 JV. They did not….

[Holset]

Originally Posted by FCX5

The way it works with such ownerships is that Rimac is an entity and Porsche is another entity. The two entities have a JV called - Bugatti-Rimac. Where Rimac has 55% share and Porsche the other 45%. Porsche is a part owner of Rimac, but does not have enough votes to overrule the other shareholders in Rimac. So if Rimac as an entity votes a particular way when making a decision on Bugatti-Rimac, Porsche does not have the votes in the JV to overturn it. They can vote at most 45% if they are in disagreement with the other shareholders of Rimac. So Rimac is the controlling entity, not Porsche. The article makes that clear - based on the ownership structure.

Porsche as a significant owner in Rimac can influence Rimac and bring in other shareholders. But I believe Mate Rimac + Hyundai have enough votes in Rimac so that no other combination can over rule them….

So for now, Bugatti is in the hands of Rimac and Mate Rimac. Porsche is the major shareholder in the project. Through their share in Rimac and being the junior JV partner. FWIW, Porsche, if they wanted to control the company could have decided to go for 50-50 JV. They did not….

Yeah we will see what the future brings.