The automaker is planning to build an electric car, aiming for a production date of 2025.
Italian hypercar manufacturer Pagani has landed itself a deal with Saudi Arabia’s Public Investment Fund (PIF) — the sovereign wealth fund that is diversifying the economy of the country to make it less dependent on oil.
These funds will be used to finance technological development, according to a statement issued by Pagani.
As both European and American markets are compelling car manufacturers to go electric within the next decade with new laws, Pagani is likely to move towards developing its electric powertrains sometime in the near future.
The automaker is planning to build an electric car, aiming for a production date of 2025.
The electric hypercar will be designed to compete against other ultra-powerful electric cars such as the Rimac Nevera and the Lotus Evija.
The Italian manufacturer is selling 30% of the company to PIF but for exactly how much has yet to be disclosed.
But it was clear from the company’s statement that the Pagani family will keep full control of the company.
PIF will soon be joining other minority shareholders Nicola Voli and Emilio Petrone.
Pagani cars, known for their stupendous exhaust notes, are right there on top with other big names in the industry, such as Ferrari and Lamborghini.
Pagani Automobili SpA was founded in 1992 by Horacio Pagani — an Argentinian national. The hypercar manufacturer became a household name when it introduced the highly successful Zonda.
These cars also come with a hefty price tag.
To put things into perspective of how expensive these cars are, in 2018 the car manufacturer stunned enthusiasts around the world when it announced that Pagani Zonda HP Barchetta would have a price tag of $17.5 million.
According to the founder of the automobile brand, PIF represents the ideal partner to further consolidate Pagani’s positioning as a brand in the hypercars segment and support its expansion strategy in the lifestyle segment.
“Ever since its foundation, Pagani has enjoyed partnerships with best-in-class players, as we believe that excellence can only be reached through team-work. This is proven by our long-standing partnerships with our technology partners that will continue to play an important role in Pagani’s future,” said Horacio Pagani, who is the CEO of the company, said in a public statement.
“Today we are proud to announce an important partnership with PIF, a key step in our long-term growth strategy, which envisages significant investments to ensure that our next hypercars will keep conveying unique emotions, irrespectively of their powertrain technology,” he added.
PIF represents the ideal partner to further consolidate Pagani positioning as an iconic brand in the hypercars segment as well as to support its expansion strategy in the lifestyle segment, Horacio further said.
Saudi Arabia’s Public Investment Fund (PIF) has over $430 billion in assets available.
PIF previously invested in another electric car manufacturer Lucid, which is based in America, and is considered to be a rival of the more well-known Tesla.
UBS Investment Bank acted as the financial adviser to Pagani, while Rothschild and Co. and Freshfields Bruckhaus Deringer acted as the PIF’s financial and legal advisers.
The reason why this deal is significant is because major car manufacturers around the world are moving to a more electric future.
According to the European commission’s proposal, all the car manufacturers must reduce the emissions of new cars by 55%, and reach 100% within 2035.
Big name competitors around the world such as the Volkswagen Group are investing heavily in battery cell manufacturers.
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