Rimac set to snap up Bugatti

Volkswagen Group is considering selling the Bugatti brand to Rimac in exchange for a larger slice of the pure-electric hypercar-maker.

Currently, the VW Group owns 15.5 per cent of Rimac, following a purchase of shares via Porsche both in 2018 and last year.

But now the German car-making giant appears ready to trade its famous French brand for a larger slice of the Croatian-based firm that should give it access to its electric powertrain technology.

According to British magazine

Back in July, Rimac's owner, 32-year-old Mat Rimac, visited Bugatti's plant and HQ in Molsheim in France and came away impressed.

Once the deal is complete, it's believed Bugatti will transition from its quad-turbo 8.0-litre W16 Chiron-derived hypercars to a pure-electric future, while Rimac itself will move its production in Zagreb to the French marque's state-of-the-art factory.

Fuelling Rimac's appeal to VW bosses is not only the ultra-lightweight power-dense battery know-how, but the fact Rimac now supplies as many as 15 different car-makers with its EV tech.

Once the deal is complete, it's been reported that current Bugatti CEO (and ex-Lamborghini chief) Stephan Winkelmann will exit the company but only after plans for a wild track-only Bugatti hypercar based on the Vision Le Mans is approved for production.

Acknowledging the rumours, a spokesman for Bugatti said the car-maker had no comment but emphasised that the VW-owned hypercar brand had been profitable for the past two years and is on track to exceed 2019 sales, despite the COVID-19 global pandemic.

Once Bugatti is sold, it's been reported that Volkswagen bosses will focus their attention on Lamborghini and SEAT. In the case of the Spanish brand, there are suggestions it might be completely rebranded Cupra and pushed upmarket.

ItalDesign, Bentley and Italian motorcycle brand Ducati will also be put under the cost microscope, the reports suggest.

Despite being well known for its battery-driven hypercars, Rimac has only produced eight examples of its 2011 Concept_One, with production yet to begin on the C_Two coupe sequel.

The main attraction to investors is the technology Rimac has singlehandedly developed.

The advantage to Rimac is the Bugatti deal would deepen ties with Volkswagen (and Porsche) and provide a world-class manufacturing facility without the need to raise any capital, since Bugatti is estimated to be worth around €500m ($A810m).

Other factors that could convince Rimac to sell is a chronic lack of investors, with potential banks, hedge firms and private equity firms holding fast in the wake of the pandemic.