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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

Brand new cars are being sold with defective Takata airbags

If you just bought a 2016 Audi TT, 2017 Audi R8, 2016–17 Mitsubishi i-MiEV, or 2016 Volkswagen CC, we have some unsettling news for you. A report provided to a US Senate committee that oversees the US National Highway Traffic Safety Administration (NHTSA) and reported on by Automotive News claims these vehicles were sold with defective Takata airbags. And it gets worse. Toyota and FCA are called out in the report for continuing to build vehicles that will need to be recalled down the line for the same issue. That's not all. The report also states that of the airbags that have been replaced already in the Takata recall campaign, 2.1 million will need to eventually be replaced again. They don't have the drying agent that prevents the degradation of the ammonium nitrate, which can lead to explosions that can destroy the airbag housing and propel metal fragments at occupants. So these airbags are out there already. We're not done yet. There's also a stockpile of about 580,000 airbags waiting to be installed in cars coming in to have their defective airbags replaced. These 580k airbags also don't have the drying agent. They'll need to be replaced down the road, too. A new vehicle with a defective Takata airbag should be safe to drive, but that margin of safety decreases with time. If all this has you spinning around in a frustrated, agitated mess, there's a silver lining that is better than it sounds. So take a breath, run your fingers through your hair, and read on. Our best evidence right now demonstrates that defective Takata airbags – those without the drying agent that prevents humidity from degrading the ammonium nitrate propellant – aren't dangerous yet. It takes a long period of time combined with high humidity for them to reach the point where they can rupture their housing and cause serious injury. It's a matter of years, not days. So a new vehicle with a defective Takata airbag should be safe to drive, but that margin of safety decreases with time – and six years seems to be about as early as the degradation happens in the worst possible scenario. All this is small comfort for the millions of people who just realized their brand-new car has a time bomb installed in the wheel or dashboard, or the owners who waited patiently to have their airbags replaced only to discover that the new airbag is probably defective in the same way (although newer and safer!) as the old one.

VW GTI Clubsport Concept celebrates model's 40th birthday with 261 hp

Volkswagen is celebrating the four-decade milestone for the GTI with the world debut of the GTI Clubsport concept at the annual Worthersee festival in Austria. While the version in these sketches is just a prototype, European buyers at least are set to get a production model in early 2016. The Clubsport is essentially a way for VW to split the difference between the already well-liked GTI and the hotter Golf R. In concept form, it packs 261 horsepower, compared to 220 hp from the standard version in the US with the Performance Package or 292 hp from the R. A temporary overboost function even lets the Clubsport make about 10 percent more power for short periods. Beyond just the mechanical upgrades, the concept in these sketches also wears a revised lower air dam at the front with a mesh grille and big strakes at the corners, and there's a new roof spoiler and rear diffuser at the back. VW also promises a more "individualized" interior. Unfortunately, the North America might not be getting this more powerful GTI. "There are no plans to bring the car to the US currently," VW spokesperson Mark Gillies told Autoblog. At this time, VW only has info about the Clubsport in German, which you can take a look at below. Related Video: Weltpremiere des Golf GTI Clubsport am Worthersee Exklusives Jubilaumsmodell zum 40. Geburtstag des GTI Golf GTI Clubsport debutiert mit 265 PS und Boost-Funktion Im kommenden Jahr feiert der Golf GTI seinen 40. Geburtstag. Volkswagen wird dieses historische Ereignis mit einem progressiven Jubilaumsmodell adeln: dem neuen Golf GTI Clubsport. In Form einer seriennahen Studie wird Volkswagen den Golf GTI Clubsport bereits am 14. Mai 2015 als Weltpremiere im Rahmen des legendaren GTI-Treffens am Worthersee prasentieren. Mit einer Leistung von 195 kW / 265 PS (plus 35 PS gegenuber dem Golf GTI Performance*) sowie einer temporar dank Boost-Funktion nochmals um rund 10 Prozent hoheren Spitzenleistung soll der Golf GTI Clubsport Anfang 2016 als der bis dato starkste jemals in Serie gebaute „GTI" durchstarten. Das Jubilaumsmodell wird nicht nur mit einem extrem leistungsstarken Motor, sondern mit einem individualisierten Interieur und exklusiven Karosseriedetails auf den Markt kommen. Zu den Design-Modifikationen gehoren ein komplett neuer Frontstoss-fanger, neue Seitenschweller, ein ebenfalls neuer und aerodynamisch hoch innovativer Dachkantenspoiler sowie ein eigens entwickelter Heckdiffusor.