Key Takeaways
- Bugatti CEO Mate Rimac believes combustion engines will remain in luxury cars for years.
- He compares the supercar market to Swiss watches, emphasizing craftsmanship over technology.
- Rimac’s new hybrid Tourbillon features a powerful V16 engine alongside electric motors.
- Customization is a growing trend among wealthy buyers, driving profits for supercar brands.
Combustion Engines in Luxury Cars
Mate Rimac, CEO of Bugatti, recently shared his perspective on the future of supercars, asserting that high-end sports cars will continue to rely on combustion engines for a significant time. He likened the situation to the luxury watch market, where traditional Swiss timepieces remain desirable despite the prevalence of smartwatches.
A Split in the Car Market
Rimac, who took the helm at Bugatti in 2021, noted a division within the automotive industry. The mainstream market is increasingly dominated by affordable electric vehicles, particularly from China. In contrast, affluent buyers at the top tier are leaning towards classic cars that feature loud combustion engines and emotional appeal.
Innovation at Bugatti
When Rimac’s company gained control of Bugatti, many anticipated an electric model. Instead, he introduced the Tourbillon, which boasts one of the largest naturally aspirated combustion engines ever made for a production vehicle. This hybrid car combines an 8.3-liter V16 engine with electric motors, producing a staggering 1,800 horsepower.
The Allure of Customization
Rimac highlighted the growing trend of personalization among wealthy customers, noting that many Tourbillon buyers invest an additional $600,000 to $700,000 on bespoke features. This demand for unique vehicles has become a significant profit driver for supercar manufacturers like Bugatti, Ferrari, and Lamborghini.
Future Goals for Bugatti
Looking ahead, Rimac aims to enhance production, quality, and profitability while maintaining the brand’s exclusivity. He stated that production will remain limited to low three-digit numbers. Last year, Bugatti reported earnings of 200 million euros (approximately $233 million) and plans to continue its growth trajectory.
Valuation and Vision
In April, Porsche AG sold its 45% stake in Bugatti Rimac to a consortium led by HOF Capital. While some reports suggested a valuation of over $1.1 billion, Rimac indicated that the actual figure is significantly higher, exceeding $2 billion.
The Human Element in Automotive Design
In an era dominated by AI and electric vehicles, Rimac emphasized the importance of human craftsmanship in Bugatti’s philosophy. He noted that while performance metrics are becoming more accessible, the artistry and engineering behind supercars remain paramount. According to him, a car is not just a vehicle; it embodies creativity, complexity, and the celebration of human skill.
