New Delhi: Porsche’s stay with Bugatti Rimac and Rimac Group has come to an end as the German automaker is divesting from both brands, selling its stake in the companies to a New York-based consortium. The announcement happens just five years after Porsche and Rimac Group established Bugatti Rimac, where the Croatian brand holds 55 per cent and Porsche a 45 per cent stake.
The sale also includes Porsche’s 20.6 per cent stake in Rimac Group. Bugatti Rimac CEO Matt Rimac said, “Porsche has been a crucial partner, and we are deeply grateful for their role in establishing Bugatti Rimac.” The scale still needs regulatory approval before completion, and the terms haven’t been revealed yet.
There is nothing known, if anything, and what will change at Bugatti Rimac. The consortium is being led by HOF Capital, which has investments in SpaceX, Epic Games, Anthropic and now Bugatti.
Porsche’s recent financial situation
The decision comes at a time when Porsche is already under mounting financial pressure. In more recent times, the brand reported a steep 92.7 per cent drop in operating profit, largely due to costs associated with recalibrating its electric vehicle strategy, resulting in a €3.9 billion hit to its accounts.
Porsche CEO Michael Leiters noted that the divestment aligns with the brand’s intent to put its focus back on its core business operations, a stance he emphasised even earlier this year.
Despite all of this, Porsche continues to invest heavily in future products, with about €2.4 billion earmarked for new developments. At the same time, the brand is moving through external challenges, which include US tariffs and heavy competition in China. These pressures are ultimately impacting its parent company, the Volkswagen Group.
Porsche isn’t in dire straits, but the changing automotive landscape has forced the brand to go back to the drawing board with its roadmap and shift strategy accordingly.