Yahoo Movies Rimac's Joint Venture With Bugatti Is Profitable 'Beyond Expectations,' CEO Says
Rimac completed its takeover of Bugatti in July 2021, forming a new joint venture that'll carry the French-born, formerly VW-owned supercar maker into a new electrified era. According to CEO Mate Rimac, the decision to join forces is already making more money than anyone anticipated.
"It's highly profitable and cash flow positive beyond anybody's expectations," Rimac told Reuters in a recent interview. "It's such a win-win situation for everybody."
As a reminder, Rimac owns 55 percent of Bugatti, with the other 45 percent owned by Porsche. Additionally, Porsche itself owns 24 percent of Rimac. Rimac says it's developed a "really close strategic relationship" with the German sports car maker.
"We are really collaborating on many levels, developing and producing lots of key elements of [Porsche's] future hybridization and electrification," he told Reuters.
The Croatian CEO added that Rimac should focus on developing a stable business with sustained profitability before it can go public like Ferrari and Porsche.
"[Ferrari] makes projections and they always achieve," Rimac 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 can happen from three to 10 years from now, Rimac tells Reuters, because "we obviously have financial investors that at some point want to exit."
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