Hyundai Reportedly Ends Their Relationship With Rimac Over Porsche’s Involvement

Breakups are hard, especially when there is a third party involved. While it’s devastating when it happens in your personal life, it’s just as difficult to deal with when it occurs in the business world, which is what Hyundai and Rimac are going through now. So, what exactly happened, and what came between this potential dream team?

The beginnings of the Hyundai and Rimac partnership

Hyundai Motor Group Executive Vice Chairman Euisun Chung and Rimac CEO Mate Rimac meeting
Hyundai and Rimac partnership | Hyundai Motor America

In 2019, the auto world was excited to hear that Hyundai would be teaming up with the electric hypercar manufacturer Rimac to create two vehicles. Since Hyundai was trying to up its EV game, this was a huge step in the right direction.

The duo planned to create a fully electric version of the Hyundai N. The other model would be a hydrogen-powered supercar known as the Hyundai Vision FK. It was to be based on the Kia Stinger sports sedan, which is already popular in its own right.

To cement the deal, Hyundai invested $90 million into Rimac. It all seemed to be going great for the pair, and it promised to open new doors for Rimac to reach out to consumers who can’t afford a hypercar, even though we can always dream. Then Porsche came along.

The breakup of the EV relationship due to Porsche

In the business world, it’s common to have deals with more than one other company. It just makes sense as you try to expand your brand and, of course, make more money. That seems to be precisely what happened when Porsche reached out to Rimac, requesting that it take over Bugatti.

It’s no secret that despite its gorgeous supercars, Bugatti has been having some trouble over the past few years. It was even feared that Bugatti would even be put up for sale, which wouldn’t be great for Porsche, as it owned the company.

That’s when Porsche reached out to Rimac and suggested a merger. Rimac accepted, and now that the two companies have joined, the new name is Bugatti-Rimac

While this is excellent news for Porsche and Bugatti-Rimac, rumor has it that Hyundai isn’t too pleased. According to AutoEvolution, Hyundai holds a 12% stake in Rimac after they partnered together. 

However, when Bugatti merged with the Croatian automaker, Porsche took 24% ownership of Rimac. Considering it also owns 55% of Bugatti, that gives the German automaker a lot of control over Bugatti-Rimac.

While it’s unclear if this is what caused Hyundai to walk away from its deal with Rimac, it probably plays a role in it. The question now is what the two will do about the agreement made in 2019. 

What happens now with Hyundai and Rimac EVs?

So, is it over? Not quite. It appears that the electric Hyundai N could still be on the table.

Motor1 referenced an article released by Automotive News Europe when it stated, “According to the pub’s sources, the two have ended the development of the fuel cell vehicle. The sports car isn’t dead, though. The EV, which will allegedly launch in early 2023, will complete its development in-house at Hyundai. When Hyundais invested in Rimac, it took a 12-percent stake in the company, which the company could sell if the partnership were over.”

Even though there will be no fuel cell car, it’s exciting to know that Hyundai and Rimac still have enough of a relationship to finish what was started with the electric Hyundai N. 

To be clear, none of this has been confirmed by either company. Hyundai is remaining silent, while AutoEvolution reported that Rimac spoke to Automotive News and pointed out that the company is still working with Hyundai.

So, are the brands together, or are they over? We’ll just have to wait for more information from both companies.

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