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Rimac inks deal to purchase 55% of Bugatti from VW Group

ZAGREB, Croatia — Croatian electric supercar builder Rimac is taking over the iconic French manufacturer Bugatti in a deal that is reported to be worth millions of euros. Rimac said GermanyÂ’s Volkswagen Group, including the Porsche division — which owns a majority stake in Bugatti — plans to create a new joint venture. The new company will be called Bugatti-Rimac. Rimac Automobili announced Monday that it will be combining forces with Bugatti to “create a new automotive and technological powerhouse.” Rimac has progressed in 10 years from a one-man garage startup to a successful company that produces electric supercars. Mate Rimac, who founded the company in 2009, says the venture is an “exciting moment” and calls the combination of the companies “a perfect match for each other.” Porsche will own 45% of Bugatti-Rimac while Rimac Automobili will hold the remaining 55% stake, according to Croatian media reports. Financial details of the deal were not published. Bugattis will continue to be assembled in eastern France, where the company was established in 1909. The vehicles will use engines developed and made in Croatia. “In an industry evolving at ever-increasing speed, flexibility, innovation and sustainability remain at the very core of RimacÂ’s operations," the company said. “Uniting RimacÂ’s technical expertise and lean operations with BugattiÂ’s 110-year heritage of design and engineering prowess represents a fusion of leading automotive minds." Earnings/Financials Green Bugatti Automakers Porsche Volkswagen Green Automakers Electric Supercars

2015 Volkswagen GTI: Introduction [w/video]

If you've ever met me, listened to me on the podcast, or come to know me through my writing during the last five years at Autoblog, the following phrase should not surprise you: I freaking love the Volkswagen GTI. I've long said that the GTI is the perfect daily driver for the everyday enthusiast – a car that offers as much practicality as it does performance, served up in a semi-premium, attractive package. I've preached the GTI's story to anyone who would listen, and I've managed to convince several people to actually go out and buy one (those folks later telling me they're super happy with their cars, by the way). As for this new, seventh-generation GTI, I'll offer a little backstory. In 2013, Volkswagen flew me to Germany to attend the Frankfurt Motor Show, where I also got to drive a number of the company's products, including the CrossBlue crossover concept. While waiting for my turn to pilot the CrossBlue in an airport hangar, one of the German PR folks directed my attention to a white, four-door GTI sitting outside, and said I was free to have my way with it for, oh, 20 minutes... on an empty runway... in the rain. This was my first experience with the new GTI, in a fairly loaded spec, with all the performance goodies. Needless to say, I loved it. But my other big belief about the GTI is that this car is truly perfect in its base form. The sixth-generation car was a blast without any dynamic controls or performance whats-its, and while those things certainly help make this new hot Golf a more enthusiastic package than ever, in my eyes, they aren't completely necessary. That's why, when it came time to order a long-term car, I took control of the options. The end result is the carbon steel gray GTI you see here, in four-door S (base) spec, with a six-speed manual transmission. Yes, I did outfit our car with the only two options available to S shoppers (aside from the $1,495 performance pack) – the $995 lighting package and $695 driver assistance pack – but other than that, it's a no-nonsense hot hatch. No sunroof. No leather. No fully power-adjustable seats. No navigation. No dual-zone climate control. No automatic headlights. No upgraded audio. The bottom line is that our long-term GTI comes in with an as-tested price of $27,895, including the $820 destination charge. That's right: a $28,000 GTI. What our car does have is everything you'd want in a GTI.

2015 Volkswagen Golf SportWagen First Drive [w/video]

Volkswagen currently offers five Golf models in the US, and in just a few weeks it will add the 2015 SportWagen to the lineup. The previous version sold as the Jetta SportWagen, although it was technically a Golf. For the new model, VW product planners decided to align all the hatchbacks under the same name. The SportWagen employs the same engines as the Golf, but significantly stretches its new MQB architecture. The result is greater practicality in the form of cargo room. With the seats up the SportWagen holds 30.4 cubic feet, almost 8 more than the Golf. The gap widens to nearly 14 cu ft with the seats folded; a max capacity of 66.5 cu ft puts the SportWagen into compact crossover territory. That added functionality leads VW to think it can sway buyers shopping the likes of the Honda CR-V and Toyota RAV4. And with the high-mpg diesel variant – 31 mpg city, up to 43 highway – VW hopes to lure those considering fuel-sipping MPVs like the Toyota Prius V and Ford C-MAX. What separates this Golf from those other two segments is the driving prowess we've come to expect from Wolfsburg's best-selling nameplate. While the silhouette is similar to the outgoing Jetta wagon, designers honed the character lines to give the Golf SportWagen a more modern, angular aesthetic. The LED headlights look sharp, the hood now scoops down at a steeper angle into the front fenders, and the general proportions – in line with other Golf models – have changed. The new SportWagen is lower, longer, and wider and than the Jetta SportWagen it replaces. Specifically, it is 1.1 inches longer, 0.7 inches wider, and despite being about an inch lower, actually boasts more headroom. Inside, things look pretty familiar to the current Golf family. There are small, premium touches such as a sporty, flat-ish-bottom wheel, piano-black trim, and an optional one-touch panoramic sunroof that makes the cabin a bright, airy, and pleasant place to be. Otherwise, it's your standard Golf fare, but with a whole lot more room out back. The same two engines that power the standard Golf – the 1.8-liter turbocharged inline-four TSI, and 2.0-liter turbocharged TDI diesel – are also found under the hood of the SportWagen. Gasoline-powered models come with a five-speed manual or a traditional six-speed auto, while the TDI gets six-speed transmissions across the board – either as a row-your-own manual, or a dual-clutch DSG auto with steering wheel-mounted paddles.