By Kim Richters

Porsche AG said Monday that it is creating a joint venture with electric-car maker Rimac that will incorporate the Bugatti brand.

The Volkswagen AG subsidiary, which holds a 24% direct stake in Rimac, said Rimac will hold a 55% share in the joint venture and Porsche will hold a 45% stake. Volkswagen's Bugatti brand will be folded into the joint venture.

"We are combining Bugatti's strong expertise in the hypercar business with Rimac's tremendous innovative strength in the highly promising field of electric mobility," said Porsche's Chairman of the Executive Board Oliver Blume.

The joint venture will be based in Zagreb, Croatia, and is expected to be created in the fourth quarter this year.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

July 05, 2021 12:04 ET (16:04 GMT)

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