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Porsche sells its Bugatti Rimac stake amid sharp profit decline

© B. Naumkin
Porsche is selling its 45% stake in Bugatti Rimac to an investor consortium led by HOF Capital as it moves to cut costs and free up capital.
Michael Powers, Editor

Porsche has announced the sale of its 45% stake in the Bugatti Rimac joint venture to an investor consortium led by the US fund HOF Capital. The move comes as the German automaker faces a steep drop in profit and a wider review of its strategy.

Bugatti Rimac was created in 2021 to bring together Bugatti’s hypercar expertise and Rimac’s electric-vehicle technologies. Porsche is now leaving the project completely, transferring its holding to an investment consortium linked to the family of Egyptian billionaire Sawiris. Once the transaction is completed, Rimac Group will take full control of Bugatti Rimac and continue developing the brand without Porsche’s involvement.

The decision reflects growing financial pressure on the company. Porsche’s operating profit fell by 93% last year, while its margin dropped to 1.1% from 14.1% a year earlier. With demand weakening in China and US tariffs adding further pressure, the company’s new CEO is focusing on cost cuts and freeing up capital. The sale of the Bugatti Rimac stake is part of that strategy.

Porsche’s exit reshapes the balance of power in the hypercar and electric-vehicle segment. Rimac gains more freedom to develop its technologies and the Bugatti brand, while Porsche turns its attention to core models and restoring profitability. Bugatti Rimac is valued at more than $1 billion, underlining investor interest in the high-tech supercar niche.