Why Bugatti’s $4 Million Hypercars Can’t Save Porsche
The German automaker can afford to drive a hard bargain with Rimac and its financial backers.
Porsche can afford to drive a hard bargain with Rimac and its financial backers over the fate of their Bugatti joint venture
Photograph: Porsche
Porsche AG’s top executives and Croatian electric vehicle entrepreneur Mate Rimac were all smiles in 2021 when announcing their hypercar joint venture, Bugatti Rimac, at a stunning 14th century seaside fortress in Dubrovnik. But, as often happens when two vastly different business cultures collide, the romance appears not to have lasted.
Rimac Group is interested in buying out Porsche’s 45% stake in the JV, Bloomberg News reported on Wednesday, citing a preliminary offer valuing the business at slightly more than €1 billion ($1.1 billion); Rimac might team up with other investors, the report noted. Porsche is under pressure to lift its stock price and boost its luxury credentials; at first glance, selling would appear to go against that strategy. However, Bugatti Rimac is an awkward fit: It sells around 100 cars a year versus Porsche’s 310,000, and the technological underpinnings of the vehicles are different. Should it decide to part ways with such a prized asset, Porsche is well placed to drive a hard bargain.