Currently reading: VW Group confirms talks with Rimac over Bugatti joint venture

Croatian EV technology firm could partner with Porsche in new deal to run the French hypercar firm

Volkswagen Group boss Herbert Diess has confirmed plans to spin off Bugatti into a joint venture between Porsche and EV specialist Rimac – but has denied reports it could sell the brand outright.

There had been reports that the German giant would sell a controlling interest in the French hypercar maker to Rimac as part of a financial deal that involved Porsche increasing its investment in the Croatian firm. Porsche recently increased its stake in Rimac from 15.5% to 24% in a deal worth £60.4 million.

During the Volkswagen Group's annual media conference, Diess said that responsibility for Bugatti is currently being transferred to Porsche, which would then discuss a possible joint venture with Rimac.

"Transferring [Bugatti] to Rimac isn't true," said Diess. "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 finalised. 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."

It's not clear whether any potential Bugatti joint venture would involve Porsche and Rimac taking an equal share.

Diess added that the decision to move responsibility for Bugatti within the Volkswagen Group to Porsche is because "we believe that Bugatti will get an environment that's stronger than being here in Wolfsburg in the volume segment."

He elaborated: "We have more synergies [between Bugatti and Porsche] over there, such as carbonfibre bodies and high-performance batteries."

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James Attwood

James Attwood, digital editor
Title: Acting magazine editor

James is Autocar's acting magazine editor. Having served in that role since June 2023, he is in charge of the day-to-day running of the world's oldest car magazine, and regularly interviews some of the biggest names in the industry to secure news and features, such as his world exclusive look into production of Volkswagen currywurst. Really.

Before first joining Autocar in 2017, James spent more than a decade in motorsport journalist, working on Autosport, autosport.com, F1 Racing and Motorsport News, covering everything from club rallying to top-level international events. He also spent 18 months running Move Electric, Haymarket's e-mobility title, where he developed knowledge of the e-bike and e-scooter markets. 

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Commenter 18 March 2021
Rimac's technology will get more widely adopted if it's cars get Bugatti badge. It will free vw from putting too much money into low volume Bugatti while keep check on rimac's tie with Hyundai
Peter Cavellini 16 March 2021

Synergies?, isn't it just a business word for plundering?, using there tech to make, keep your product(s) at or near the top of the car food chain?, I just wish they'd be honest and say, we like your tech, we would like to use your tech,and how much?, it reads like a big Fish swallowing a smaller Fish.

ChironSupersport 20 March 2021

Bugatti underneath the direct control of Porsche? That alone in of itself is the very best thing I've heard about Bugatti since all these rumours started due to very sloppy journalism last year! Having access to Porsche's engineering prowess could further the lifespan of the W16'S. And a technology share including platforms with Rimac? Icing on the cake! :)