Bugatti x Rimac

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Rimac has just announced a massive milestone, as it combines forces with the iconic car manufacturer Bugatti Automobiles. Its main goal is to create a new automotive and technological powerhouse. This new collaboration is called ‘Bugatti Rimac’.

source: https://web-cdn.rimac-automobili.com/wp-content/uploads/2021/07/05153043/Bugatti-Rimac-e1625492571220-2160×1394.jpg

Bugattis’ 110 years experience in designing and engineering and Rimacs electric motors will be an interesting collaboration nonetheless. It’s impressive that The Croatian-based brand now owns 55% of Buggatis stake, while Porche owns the rest 45% of the stake. Quite impressive for a company that has sold less than 200 units.

Rimac is also known and trusted for the development, production, and supply of battery systems, drivetrains, and other EV components. However, that’s about to change as they announced it will be separated into new entities. Mate Rimac will be running as CEO on both Bugatti Rimac and Rimac. Although, they will still continue as individual brands. So far Rimac has been helping out Porsche Hyundai Koenigsegg and many others with their own technology. Porsche plays a strong role as a strategic partner in this creation.

New Headquarters for Bugatti Rimac in Zagreb, Croatia under the Rimac Group

source: https://web-cdn.rimac-automobili.com/wp-content/uploads/2021/07/05172555/Bugatti-RImac-2-1-2160×1441.jpg

This will be helping the industry to go electric by designing and producing key components for large OEMs hybrid and electric cars. Mate Rimac stated that: “Rimac and Bugatti are a perfect match in terms of what we each bring to the table. As a young, agile, and fast-paced automotive and technology company, we have established ourselves as an industry pioneer in electric technologies”

What Else Could We Expect?

We can expect either a Hybrid car from Bugatti or a fully Electric Bugatti. In general, both of these options will be more environmentally friendly for Bugatti. It also gives Bugatti more potential to reach its limits. Sadly all good things must come to an end — and the end is approaching for the famed quad-turbo 16-cylinder. Bugatti CEO, Stephan Winkelmann, stated that the W16 engine is “the last of its kind,” and there are no plans to give it another revival.

Downsides

Since Bugatti is going to use Rimacs technology, maintaining it might be more expensive. This could increase the already sky-high price of a Bugatti vehicle. Some customers of Bugatti bought Bugattis because of the engine, so some people might not accept the electric Bugattis. Bugatti Rimac is technically a joined venture, which means the following problems could occur:

Internal competition over control

Strategic asymmetry – leading to conflict over strategy or changes in interdependency levels

Operational asymmetry – methods and systems between the partners leading to conflict

Cultural asymmetry – cultural differences could lead to conflict

Managerial opportunism/or contract incompleteness – cheating behavior by one partner and raising the transactional/general costs

Conclusion

In conclusion, the future is looking bright and eco-friendly for all parties if they stay loyal to each other.

source: Bugatti Rimac Press Kit

sources: https://www.bugatti-broward.com/bugatti-information/bugatti-w16-engine/

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