Porsche has agreed to sell its stakes in sportscar makers Bugatti and Rimac to a consortium led by HOF Capital, co-founded by Onsi Sawiris. According to multiple reports, Porsche will divest a 45% stake in Bugatti Rimac, the joint venture hosting the iconic Italian brand, as well as a 20.6% stake in Rimac Group.
Key Takeaways
Porsche has agreed to sell its stakes in sportscar makers Bugatti and Rimac to a consortium led by HOF Capital, co-founded by Onsi Sawiris. This move comes as Porsche seeks to cut costs and focus on core business amid declining profit margins.
- Porsche sells 45% stake in Bugatti Rimac and 20.6% stake in Rimac Group
- Consortium led by HOF Capital with BlueFive Capital as largest investor
- Deal aims to free up capital for Porsche amidst financial pressures
- Rimac Group set to take full control of Bugatti Rimac
Under pressure to cut costs and free up capital, Porsche CEO Michael Leiters stated that this sale will allow the company to focus on its core business. The deal comes amidst declining profit margins for Porsche, which dropped to 1.1% last year from 14.1% in 2024 due to US tariffs and falling demand in China.
The joint venture between Porsche and Rimac was formed in 2021, with the German automaker's then CEO Oliver Blume touting it as a marriage of Bugatti’s expertise in hypercars with Rimac’s innovative strength in electric mobility. However, Porsche has since become a burden for its parent company Volkswagen.
Rimac Group is set to take full control of Bugatti Rimac and form a strategic partnership with BlueFive Capital and HOF Capital to support the brand's growth. Financial terms of the transaction were not disclosed, but Reuters reported in 2022 that Croatia’s Rimac had a valuation of more than €2bn.
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