Automotive
Bugatti CEO Mate Rimac Says High-End Supercars Will Keep Combustion Engines
The leader of the luxury brand compares the future of the top-tier auto market to mechanical Swiss watches.
The short version
- Bugatti CEO Mate Rimac stated that while the mainstream automotive market will transition to electric vehicles, the luxury supercar segment will continue to rely on internal combustion engines.
- Rimac compared the future of high-end cars to the mechanical Swiss watch market, which retains high profitability and appeal despite the prevalence of digital smartwatches.
- Bugatti is currently producing the Tourbillon, a hybrid model featuring an 8.3-liter V16 engine combined with electric motors, priced at approximately $4.5 million.
Key facts
- Bugatti CEO Mate Rimac stated that wealthy buyers at the top of the automotive market prefer old-school combustion engines and precision mechanics over electric vehicles and high-tech electronics.[CNBC]
- Bugatti's new hybrid model, the Tourbillon, combines an 8.3-liter V16 combustion engine with electric motors to generate 1,800 horsepower.[CNBC]
- Bugatti is limiting production of the Tourbillon to 250 units, all of which are already sold out at a starting price of around $4.5 million.[CNBC]
- Average Tourbillon buyers add between $600,000 and $700,000 in custom personalization options to their vehicles.[CNBC]
- In April, Porsche AG agreed to sell its 45% stake in Bugatti Rimac to a global consortium led by HOF Capital.[CNBC]
- Bugatti recorded 200 million euros in earnings before interest, taxes, depreciation, and amortization last year.[CNBC]
What remains uncertain
- While previous reports estimated the valuation of Bugatti Rimac at over $1.1 billion, Rimac claims the actual valuation is substantially higher than $2 billion.[CNBC]