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September 18, 2020

VW family silver on the block – report

VW Group reportedly is set to sell Bugatti to Rimac of Croatia.

By Olly Wehring

VW Group reportedly is set to sell Bugatti to Rimac of Croatia.

Britain's Car magazine said the luxury brand would likely be transferred to Rimac via Porsche, in exchange for a bigger share in the electric hypercar maker.

Porsche boosted its slice of Rimac to just over 15% a year ago.

Car sources said VW executives approved the deal last week but it had yet to be signed off by the supervisory board.

The report noted Bugatti, Lamborghini and Bentley were added under the reign of the late Ferdinand Piech, once head of VW's managing board and then its supervisory chairman.

"Volkswagen Group no longer wants to lavish money and manpower on the so-called hobby brands acquired by the former CEO. Instead, all resources must be devoted to fund the massive investment programme in the future of motoring – electrification, digitalisation and autonomous driving," Car's report said.

The company is buried in debt as it converts whole plants from combustion to electrified vehicles and it took a huge financial hit from 'dieselgate' which is still ongoing.

Apart from Porsche, Car noted, other Rimac investors include Hyundai, Jaguar, Koenigsegg and Magna and 15 car companies reportedly using its technology.

Car also said Lamborghini, Seat, Ital Design, Bentley and Ducati are all being eyed for possible sale.

A week ago McLaren said the potential sale and leaseback of its global headquarters in the UK would have "no impact" on its operations. The manufacturer had appointed banks to advise it on a debt refinancing and equity raise as part of a refinancing plan.

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