Porsche sells Bugatti and Rimac stakes as cost pressures mount

Porsche agreed to sell its stakes in Bugatti Rimac and Rimac Group to a consortium led by HOF Capital and BlueFive Capital, a move that underscores how much pressure is building inside Europe’s luxury auto business. The German maker will exit its 45 percent holding in Bugatti Rimac, the joint venture that houses Bugatti, and its separate 20.6 percent stake in Rimac Group.

The transaction agreements were signed on April 24 and remain subject to customary conditions and regulatory clearances. If approvals are secured, completion is expected before the end of 2026. Porsche said the financial terms are confidential unless disclosure is required by reporting obligations.

The sale goes beyond a simple portfolio shuffle. Porsche and Rimac Group created Bugatti Rimac in 2021, pairing one of the industry’s most prestigious combustion-era names with one of its most closely watched electric-performance ventures. Rimac held 55 percent of the joint venture, while Porsche held 45 percent, giving the German group a prime seat in a future it once framed as a showcase for ultra-luxury electrification. The separate stake in Rimac Group gave Porsche another direct link to the Croatian performance company behind Rimac Technology.

Now Porsche is pulling back as profits weaken sharply. The company reported 2025 sales revenue of 36.27 billion euros, operating profit of 413 million euros and an operating return on sales of 1.1 percent, down from 14.1 percent in 2024. It said 2026 recalibration measures will continue to hit earnings in the high three-digit million-euro range. U.S. tariffs and weaker demand in China have added to the strain.

The strategic shift is clear. Porsche has said it is streamlining management, reducing hierarchies and cutting bureaucracy while focusing more tightly on core business. Chief executive Michael Leiters said the sale would let Porsche concentrate on that core business. Mate Rimac said the new structure allows his company to move faster on its long-term vision.

For HOF Capital, a New York-based investment firm, and BlueFive Capital, the consortium’s largest investor, the deal offers entry into a brand portfolio with rare global cachet. BlueFive and HOF said the investor group includes institutional backers across the United States and Europe, with Hisham Elhaddad among the executives shaping the deal.

The numbers around Rimac still show why the asset mattered. Rimac was valued at more than 2 billion euros in 2022, making Porsche’s retreat from the partnership a notable signal. In a market defined by tariffs, China weakness and fierce competition in both luxury and EV segments, Porsche is choosing capital discipline over moonshot branding.