Volkswagen AG (OTC: VWAGY) has announced a joint venture with croatian electric vehicle startup Rimac Automobili in which they plan to create Bugatti’s first EV model. Bugatti has been a subsidiary of Volkswagen since the german automaker acquired the supercar brand in 1998. Under the new deal, Rimac will own a 55% majority ownership stake in Bugatti while Porsche, also a Volkswagen subsidiary, will own a 45% stake. Porsche had initially bought a 10% stake in Rimac back in 2018, and the Company now owns a 24% stake in the Croatian EV Supercar Maker. Volkswagen, has made a concerted effort to compete in the global EV market heavily dominated by Tesla. The Company, along with its subsidiaries, has produced a number of EV’s including the Volkswagen ID.4 and the Porsche Taycan.
Rimac CEO and Founder Mate Rimac expressed his enthusiasm for the new joint venture and stated, “This is a truly exciting moment in the short, yet rapidly expanding history of Rimac Automobili… We have gone through so much in such a short space of time, but this new venture takes things to a completely new level. Rimac and Bugatti are a perfect match in terms of what we each bring to the table. As a young, agile and fast-paced automotive and technology company, we have established ourselves as an industry pioneer in electric technologies.” Bugatti and Rimac will remain separate brands, however, and there are plans in place for the two companies’ workforce to merge at Rimac’s USD 200 Million Croatia facility in 2023. It has also been rumored that Rimac could seek an IPO of its own in 2022. When pressed on the subject earlier, a spokesperson from the Company said, “As for going public, we’re considering different options, but it hasn’t been decided which direction we’ll go in.”