So you’ve read the title.
It’s not unheard of that large companies to invest in smaller companies for their technologies.
So why am I making a post out of this partnership?
Founded in 2009 by Mate Rimac, the goal was the build the best electric car possible. It’s first model, the Concept 1 was able to outrun the Porsche 918 on a dragstrip and the company also develops and produces battery packs, drivetrain systems and full vehicles for other companies.
Porsche has just invested 10% into Croatian company.
So why is this important?
As you know, the automotive world is moving into electric, whether car companies like it or not. Porsche, famously known for their engine cars, knows that they would be hit badly, from both regulations and technology wise (like how other phone companies had to play catchup to the iPhone) if they don’t position themselves as a leader in the electric industry.
Buying into their current suppliers is one of the smartest things they can do. They KNOW Rimac will become a successful company in the future. As one of the only electric companies that can deliver on their promises, and produce high-end products, Rimac can develop the next generation of products for the VW group.
I believe this partnership will shoot Porsche (and the rest of the VW Group) to leaders of the electric car industry and give Tesla something to compete toe to toe.