Volkswagen said Monday that it was giving up control of Bugatti, the storied automaker whose absurdly expensive hypercars are worshiped by aficionados but seemed incongruous at a company better known for economical Golfs and Passats. Bugatti, whose Chiron model starts at close to $3 million; will become part of a joint venture between Volkswagen’s Porsche unit and Rimac, a young Croatian company that has made a name for itself doing design and engineering projects for large carmakers. Oliver Blume, the chief executive of Porsche; acknowledged Monday that the deal removes a distraction for Volkswagen and allows the company to focus on more important tasks. These include shifting to the production of electric vehicles and overcoming the effects of an emissions scandal.
The Transition to Electric Cars:
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Shopping for an electric car can be exciting and bewildering. Consider what kind of car you want and need and where you will charge. Despite price tags that can top $10 million for limited-edition models and celebrity owners like the Portuguese soccer star Cristiano Ronaldo and the entertainer Jay Leno; Bugatti chronically lost money. “It’s the only way to develop Bugatti for a profitable future,” Lutz Meschke; the chief financial officer of Porsche, said of the joint venture.
But the venture allows Porsche to keep its hand in the business and benefit from technological innovations, Mr. Blume said. Porsche is itself a storied sports car brand, but many of its models sell for less than $100,000 and it has been a steady moneymaker for Volkswagen. Mr. Rimac said that Bugatti will begin shifting to electric vehicles but continue to sell cars with internal combustion engines for years to come. Bugatti’s current flagship is the Chiron, which is equipped with a 16-cylinder, 1500 horsepower gasoline engine and has a top speed of 300 miles per hour.