Porsche announced on Friday the sale of its 45 percent stake in Bugatti Rimac to a consortium led by New York-based HOF Capital, marking a complete exit from its investment in the Croatian electric hypercar maker.
The automaker will also divest its 20.6 percent stake in Rimac Group, the parent company of Bugatti Rimac, under the terms of the agreement. This follows the establishment of the joint venture in 2021, when Porsche took a 45 percent share and Rimac Group retained 55 percent control.
The sale comes amid mounting pressure on Porsche to restructure its business portfolio as slowing growth, rising costs, and intensifying margin pressure from U.S. tariffs and geopolitical disruption reshape the automotive landscape. Porsche’s operating profit fell by 92.7 percent last month due to the costs of shifting its electric vehicle strategy, resulting in a €3.9 billion hit to its accounts.
Part of that financial burden includes approximately €2.4 billion allocated for new product development, indicating the company is not facing insolvency but is instead prioritizing core operations. Porsche CEO Michael Leiters stated the divestment demonstrates a focus on the core business, echoing similar remarks made during the company’s annual press conference in March.
Following the transaction’s completion, Rimac Group will assume full operational control of Bugatti Rimac and form a strategic partnership with HOF Capital and BlueFive Capital to support the brand’s growth. HOF Capital, co-founded by a scion of Egypt’s billionaire Sawiris family, will join Rimac Group as a major shareholder alongside founder Mate Rimac.
BlueFive Capital, a private equity firm led by Hazem Ben-Gacem, a former executive at alternative investment firm Investcorp, serves as the largest investor in the consortium. The deal remains subject to regulatory approval and is expected to be finalized before the end of the year, with financial terms undisclosed.
Shares in Frankfurt-listed Porsche dropped 1.6 percent in early trading on Friday after the announcement, reflecting immediate market reaction to the strategic shift.
The divestment underscores Porsche’s response to sustained challenges in key markets, including declining demand in China and the impact of U.S. tariffs on its export-dependent model, which lacks domestic manufacturing presence in the United States.
What does Porsche’s exit from Bugatti Rimac mean for the brand’s future direction?
Porsche’s exit allows Rimac Group to assume full control of Bugatti Rimac and pursue its long-term vision with strategic backing from HOF Capital and BlueFive Capital, enabling faster execution of product development and market expansion without joint venture complexities.
How does this move align with Porsche’s broader corporate strategy?
The divestment is part of Porsche’s effort to refocus on core automotive operations amid financial pressures from electric vehicle transition costs, U.S. tariffs, and weak demand in China, as part of a broader restructuring within the Volkswagen Group.
Why did Porsche choose to sell its stake now rather than retain its investment?
Porsche cited mounting financial strain from its EV shift and external pressures, including tariffs and Chinese market competition, which have compressed margins and necessitated the divestment of non-core assets to preserve capital and operational focus.
