The Volkswagen Group is about to sell its shares Bugattithus ending his 28-year association with the brand, which it revived in 1998.
Over the weekend, Porsche – in which Volkswagen owns a 75 percent stake – announced it would sell its shares in Bugatti Rimac and Rimac to a group of venture capital firms led by New York-based HOF Capital and Abu Dhabi-based BlueFive Capital.
The sale is expected to be completed by the end of the year once all regulatory reviews have been completed. Neither party has disclosed the selling price.
In a statement, Porsche CEO Michael Leiters said the company had “laid the foundation for Bugatti’s future” and, thanks to its early investment in Rimac, could make a “significant contribution to the development of Rimac Technology into an established Tier 1 automotive technology company.” With the sale, he continued: “We will concentrate Porsche on its core business.”
Under the leadership of Ferdinand Piëch, the Volkswagen Group bought the rights to the Bugatti name and brand from Italian businessman Romano Artioli.
Bugatti moved its headquarters to Molsheim, France, and launched the critically acclaimed Veyron EB 16.4 in 2005, powered by a 736 kW (1000 hp) 8.0 liter quad-turbo W16 engine.
After news of the Dieselgate emissions cheating scandal broke in late 2015, the Volkswagen Group was not only forced to spend at least 31 billion euros in fines, compensation and buyback costs, but the automaker also switched from “clean diesel” to electric vehicles.
To offset massive investments in electric vehicle development and Dieselgate costs, jobs were lost, budgets were cut, and rumors about Bugatti’s future began to circulate.
As part of a complex transaction completed in 2021, the Bugatti and Rimac brands were brought into a holding company called Bugatti Rimac, 55 percent owned by the Rimac Group, led by founder Mate Rimac, and the remainder owned by Porsche.
In return, Porsche increased its stake in the Rimac Group to 24 percent, putting it ahead of Hyundai (12 percent) in the shareholder list but behind Mate Rimac (37 percent).
Bugatti and Rimac continue to operate as separate brands with their own management, although Mate Rimac is CEO of Bugatti Rimac, the Rimac Group and Rimac Technology.
MORE: Explore the Porsche showroom | Bugatti showroom
