Porsche cuts ties with Bugatti in €1bn sell-off

Porsche has completed its sale of Bugatti to the Rimac Group in a €1bn sell-off.

Porsche and Rimac entered into a joint venture back in 2021, with the German brand holding on to a 45 per cent stake, and Croatian outfit Rimac the rest. The resulting joint venture was established as the Bugatti Rimac group.

At the time, Porsche also held a 21 per cent stake in the Rimac Group itself.

Now, however, Rimac Group and a wider consortium led by HOF Capital have completed their purchase of Porsche’s stake in Bugatti, and its stake in Rimac Group, too. Porsche is expected to net around £1bn from the sale, of which it says around 250 million euros will be used to fund its pension obligations.

Porsche added that as a result of the sale, it expects its net cash flow margin for the full year 2026 to rise from 5.5 to 7.5 per cent, up from a previous forecast of three to give per cent.

Mate Rimac, founder and president of the Rimac Group and CEO of Bugatti Rimac, said: This is an important step for Bugatti Rimac and the entire Rimac Group. I am delighted that HOF Capital and its consortium are becoming our partners in the next phase of our Group’s development, and I look forward to working together to realize the full potential of our companies.

“We have made strong progress across all companies in the Group, and I believe this partnership gives additional momentum to our continued growth.”

President of Bugatti Automobiles Christophe Piochon will now step down, replaced by Rimac, who will take up the role alongside his existing titles.