2012 Bugatti Veyron on 2040-cars

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Volkswagen may 'carve out' Lamborghini to list on the stock exchange

FRANKFURT — Volkswagen is drawing up plans to set up Lamborghini as a more independent unit, and is discussing long-term supply deals that could make it easier to list it on the stock exchange, two sources familiar with the matter told Reuters. "Volkswagen is in the process of carving out Lamborghini, and to organize future supply and technology transfer deals," one of the sources familiar with the matter told Reuters. The Italian sportscar brand, which is currently a division of Audi, could be partially listed, with Volkswagen retaining a controlling stake, the first person familiar with the talks said. There is no formal decision to divest Lamborghini, a second source said, adding that the timetable of any deal remained unclear. "This is a first step which gives VW the option to list the unit further down the line," the second source told Reuters. A third source familiar with the discussions said the future of Bugatti, Lamborghini and Ducati was discussed during a supervisory board meeting last Friday. The possibilities for how to electrify the Lamborghini and Bugatti brands through partnerships and investors was discussed, the third source said. Bankers and potential cornerstone investors in an IPO have been approached by the carmaker, the sources said. Volkswagen declined to comment. Volkswagen Group's Chief Executive Herbert Diess on Wednesday said the carmaker will announce "important steps" about the company's future before the close of the year. Volkswagen is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play within the multi-brand carmaker as part of broader quest for more economies of scale, senior executives told Reuters. A global clampdown on combustion-engined vehicles has forced carmakers to accelerate development of low-emission technology for mainstream models, leaving Volkswagen managers struggling to find resources to electrify low volume sportscar models. Related Video:

UPDATE: Porsche could raise its stake in Rimac, and Rimac weighs in

CLARIFICATION: An earlier version of this Reuters story said Porsche could raise its stake in Rimac to nearly 50%, but Rimac reached out to Autoblog to say that's not so. Here is a statement from Mate Rimac: "We have a very strong partnership with Porsche that is key for Rimac Automobili. Porsche is a shareholder in Rimac since 2018 with 15.5% ownership currently, accumulated over several rounds of investment. While it is true that we are discussing further expansion of this collaboration that will lead to increase of Porsche's stake in Rimac Automobili, some media have mistakenly reported that Porsche would take over 50% or nearly 50% of the company.   We are very happy that the partnership with Porsche will strengthen even further, but it is in the interest of both Rimac and Porsche that Rimac is a fully independent company. We are working with many car companies that are not our shareholders and there is a clear separation between shareholding and projects. It is very important to us that our industry customers have the peace of mind that Rimac is independent and that there is an "Information Firewall" between projects and shareholders (not only Porsche, but also Hyundai and others) - and this will not change. Confidentiality is very valued in the industry and one of the basics for collaboration between companies. Our shareholders are happy with such an arrangement and expect the same level of professional behaviour and confidentiality for their projects and customer projects.   So, the point is: Porsche's stake will increase but nowhere near to 50% and Rimac will remain independent with many industry customers that are not our shareholders/investors." The original story, with the 50% reference removed, appears below.   FRANKFURT — Volkswagen unit Porsche is participating in a financing round of Rimac Automobili that will see the electric supercar maker raise 130 million-150 million euros ($157 million-$181 million), its owner Mate Rimac told weekly Automobilwoche. The fundraising should be completed in two to three months and another round is planned at the end of the year, Rimac told the trade journal. Porsche owns a 15.5% stake in Rimac Automobili and could raise its stake in a deal that would also include the transfer of Volkswagen's supercar brand Bugatti to Rimac, Automobilwoche said. Volkswagen and Rimac were not immediately available for comment on Sunday.

How an 18-cylinder engine and the Porsche 917 shaped the Bugatti Veyron

On the surface, Volkswagen's resurrection of Bugatti looks like one of the many chess-like moves made in its bold quest to expand its portfolio of brands during the late 1990s. In a way, it was; branching out into new segments motivated executives to buy a once-venerated French brand that hadn't made a car in years. On a secondary level, the acquisition allowed one man to fulfill his dream of developing the world's most prestigious car. Bugatti opened its archives to tell the story of how its first 21st-century car, the Veyron, was born.  Ferdinand Karl Piech (1937-2019), a brilliant engineer who rose to the top of the Volkswagen Group during a long and illustrious career, sketched out an 18-cylinder engine in 1997, on the back of an envelope, while riding the bullet train between Tokyo and Nagoya. It consisted of three VR6 cylinder banks separated by 60 degrees and tuned to deliver 555 horsepower. The 6.25-liter engine was naturally aspirated and envisioned for high-end luxury cars -- the kind that would make Mercedes-Benz (who also experimented with an 18-cylinder engine) blush. There was one big problem: Volkswagen Group didn't have a suitable car to put it in. Rolls-Royce would have been an option, but BMW unexpectedly ended up with the name (though not the factory nor the Spirit of Ecstasy) after a bitter bidding war. Although Volkswagen had bagged Bentley, Piech set his mind to buying the dormant Bugatti brand, which belonged to Italian entrepreneur Romano Artioli, after Piech's son gave him a model of a Type 57 SC Atlantic while vacationing in Majorca. He talked Volkswagen's financial department into clearing the funds needed to buy the brand right after he returned to Germany, and the transaction was completed in 1998. With an engine and a name, Piech set the ball rolling. Italidesign's Giorgetto Giugiaro designed the EB118 concept in a matter of months and presented it to the public at the 1998 edition of the Paris Auto Show. It arrived as a front-engined coupe powered by the Austrian engineer's 18-cylinder engine. Several concepts followed: the EB218 shown at the 1999 Geneva Motor Show explored what a Bugatti sedan could look like, the EB18/3 Chiron introduced that same year moved the brand in a sportier direction, and the EB18/4 Veyron brought the idea of a modern-day hypercar much closer to production. It's this design study that received the green light for production.