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Bugatti and Rimac joint venture profitable 'beyond expectations'

WARWICK, England — The joint venture between Croatian electric carmaker Rimac and Bugatti has been far more profitable than anticipated as the two brands work on developing vehicles together under one roof, Rimac's top executive said on Wednesday. "It's highly profitable and cash flow positive beyond anybody's expectations," Rimac CEO Mate Rimac told Reuters in an interview at the UK offices of the carmaker's Rimac Technology unit in Warwick. "It's such a win-win situation for everybody." Rimac added the joint venture has brought "lots of synergies going both ways." The Rimac Group comprises the Bugatti-Rimac JV, producing the electric sportscar Nevera and the Bugatti Chiron — which is owned 45% by Porsche AG — and a technology unit which supplies battery systems and powertrain components to other carmakers. Earlier this year the group raised 500 million euros ($519 million) in a new funding round. Rimac's CEO said the company has developed a "really close strategic relationship" with Porsche, which was listed by its parent Volkswagen in October. Porsche holds a 20% stake in the Rimac group. "We are really collaborating on many levels, developing and producing lots of key elements of their (Porsche's) future hybridization and electrification," he said. Rimac's CEO said the group must become more like Ferrari with a predictable, stable and profitable business before it can contemplate an initial public offering. "They (Ferrari) make projections and they always achieve," he said. "What I want to have is some kind of stability and certainty before we do an IPO because we don't want to make promises we can't keep." An IPO could happen anytime from three years to a decade from now, and could involve going public as a group or spinning off a unit, he said, but is definitely coming because "we obviously have financial investors that at some point want to exit." Related video: Earnings/Financials Green Bugatti Porsche Electric Luxury Performance Supercars Rimac

Car Club USA: Porsche Club of America Escape to Rushmore

The Porsche Club of America, whose motto is "it's not just the cars, it's the people," plans its annual Escape in a different city every year. This year's was particularly epic, as Porsche fans headed to the Black Hills of South Dakota for their gathering. The scenery and the history are part of the attraction, but the winding roads are the real headliner. "This road right here is the reason why we chose the Black Hills of South Dakota to do the 2015 Escape," said Ron Johnson of the Nord Stern Porsche Club as he navigated the mountain range. "These Porsches really love these twisty, curvy roads." That statement neatly sums up why the sports cars have resonated so deeply with their owners and enthusiasts for so long. In addition to the guided tours and drives around the winding terrain, the club hosts a car show. This year marks the club's 60th in the United States, and the Escape drew a wide range of Porsches of all vintages. Lloyd and Donna Nelson from Valley City, ND, arrived in their 1955 Porsche Speedster, which they purchased alongside a 1951 coupe in 1964 for a grand total of $750. Needless to say, it was a good investment – although they didn't know it at the time. "We had two children, one on the way, we were both working and I really didn't see the sense in two old cars," explained Donna. "I said, 'one of them has to go,'" to which Lloyd responded, "which one of the kids?" They sold the coupe long ago, but the speedster is still gorgeous and gets more than its fair share of stares and use. Will they win best of show? "This is what us as enthusiasts dream of," Johnson said. Watch the latest episode of Car Club USA to see how it turns out and for a snapshot of life at the Escape. Each Car Club USA episode features a different car club or event from across the US, where passionate owner communities gather to share automotive experiences and embark on incredible adventures. From Main Street cruises to off-road trails, catch all the latest car club activity on Autoblog.

Porsche board members facing another ˆ1.8B lawsuit over VW takeover bid

Back in 2008, Porsche got the bright idea that it could take over Volkswagen in the midst of the worst economic slump since the Great Depression. Ignoring that this was a catastrophic move for the Stuttgart sports car manufacturer that that eventually resulted in it nearly going bankrupt and eventually being taken over by the same company it sought to control, the aftermath has left Porsche Chairman Wolfgang Porsche and board member Ferdinand Piëch in the crosshairs of seven hedge funds that lost out during the takeover and are now seeking €1.8 billion - $2.43 billion US - in damages from the two execs, according to the BBC.
See, investors bet on Volkswagen's share price going down, partially because Porsche said it wasn't going to attempt a takeover. But Porsche was attempting to take over VW, having bought up nearly 75-percent of VW's publicly traded shares. When word broke that Porsche owned nearly three-quarters of VW (which indicated an imminent takeover attempt), rather than go down like the hedge funds bet it would, VW's share price skyrocketed to over 1,000 euros per share, according to Reuters.
Naturally, when you bet that a company's share price is going to drop and it in turn (temporarily) becomes the world's most valuable company, you lose a lot of money, unless you're able to buy up shares before prices jump too much. This led to a squeeze on the stock, which the hedge funds accuse Porsche and Piëch (who are both members of the Porsche family and supervisory board) of organizing.