VW hands control of Bugatti to Croatian EV maker and Porsche

Volkswagen AG will fold its ultra-luxury Bugatti brand into a joint venture with Croatian electric supercar maker Rimac Automobili, extending a lifeline to the boutique French manufacturer known for hulking 16-cylinder engines.

Rimac will hold a 55% stake in the joint venture with VW’s Porsche sports-car unit owning the remaining 45%, the companies said in a statement Monday. Porsche earlier this year lifted its stake in Rimac to 24%. VW Chief Executive Officer Herbert Diess has stepped up efforts to focus funds on the German group’s namesake, Audi and Porsche brands as Europe’s biggest automaker embarked on the industry’s largest push into electric vehicles to challenge Tesla Inc.