Porsche sells Bugatti Rimac share to refocus on core business

Porsche has agreed to sell its 45% stake in Bugatti Rimac to a consortium led by U.S.-based HOF Capital, in a move that underscores the German carmaker’s push to steady its core business. The deal comes as the company faces pressure to cut costs, improve profitability and free up capital after a sharp fall in operating profit last year.

The stake sale covers Porsche’s holding in Bugatti Rimac, the joint venture created in 2021. That company owns the Bugatti brand in France and also holds a 20.6% stake in Croatia’s Rimac. Once the transaction is completed, Rimac Group is expected to take control of Bugatti Rimac.

The companies did not disclose financial terms. However, a person familiar with the matter said Bugatti Rimac had a valuation of more than $1 billion. Porsche and Bugatti Rimac declined to comment on that figure.

Why Porsche is moving now

The decision follows a difficult period for Porsche. Its operating profit dropped 93% last year, adding to wider concerns inside the German carmaker, which is majority-owned by Volkswagen. Its profit margin also slipped sharply, falling to 1.1% from 14.1% in 2024, as it faced weaker demand in China and the impact of U.S. tariffs.

New Porsche CEO Oliver Blume is under pressure to reduce costs and release capital. He took charge at the beginning of this year and is now steering the brand toward its main business rather than peripheral investments.

What the partners said

In a joint statement, Leiters said, “In setting up the joint venture Bugatti Rimac together with Rimac Group, we successfully laid the foundation for Bugatti's future," and added, “Now, with the sale of our stake, we are focusing Porsche on the core business."

Porsche had earlier described the Bugatti-Rimac partnership as a way to combine Bugatti’s hypercar expertise with Rimac’s strength in electric mobility when the venture was formed under former CEO Oliver Blume.

Who is involved in the new consortium?

BlueFive Capital said on Friday that it is among the investors in the HOF Capital-led consortium. HOF Capital was co-founded by Onsi Sawiris and is backed by a U.S. fund linked to Egypt’s billionaire Sawiris family. BlueFive clarified that it is investing only in Bugatti Rimac, not Rimac itself.

BlueFive Capital, launched in November 2024 and based in Abu Dhabi’s financial centre, has offices in the Gulf, London and Beijing, and works across private equity, real estate, infrastructure and financial products.

(With inputs from Reuters)

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