Porsche has announced the sale of its stakes in sports car makers Bugatti and Rimac to a consortium spearheaded by U.S.-based HOF Capital, a fund linked to Egypt’s billionaire Sawiris family. The German automaker will divest its 45% stake in Bugatti Rimac – a joint venture established in 2021 that holds France-based Bugatti and a 20.6% stake in Croatia’s Rimac – according to statements from the involved companies. This strategic move aligns with Porsche’s new CEO’s focus on revitalising the struggling core brand, following the original joint venture’s design to merge Bugatti’s hypercar expertise with Rimac’s strengths in electric mobility.
This divestment comes as Porsche conducts a review of its strategy, following a significant 93% slump in its operating profit last year. The German brand, majority-owned by Volkswagen, saw its profit margins plummet to 1.1% from 14.1% in 2024, impacted by U.S. tariffs and weakening demand in China. While financial terms of the deal were not disclosed, a person familiar with the matter indicated that Bugatti Rimac had been valued at over $1 billion. Porsche and Bugatti Rimac declined to provide further comment on the financial specifics.
Leiters, who assumed the CEO role at the beginning of the year, is now under pressure to implement cost-cutting measures and free up capital. BlueFive Capital, an Abu Dhabi-incorporated firm with $15 billion in assets under management, confirmed its participation in the HOF Capital-led consortium, specifically investing in Bugatti Rimac. Once the deal concludes, Rimac Group, a Croatian company known for its strength in electric mobility and hypercar development, is set to assume control of Bugatti Rimac. It will then form a strategic partnership with BlueFive Capital and HOF Capital to support its future growth initiatives.
