Porsche completes Bugatti Rimac exit, lifts 2026 cash flow outlook

Porsche Finalizes Bugatti Rimac Exit, Boosts Future Cash Flow Guidance

Porsche's Strategic Exit from Bugatti Rimac and Financial Implications

Completion of Stake Sale

Sept 9 (Reuters) - Porsche said on Wednesday it had completed the sale of its stakes in Bugatti Rimac and Rimac Group after receiving regulatory approvals, finalising its exit from the Croatian electric hypercar maker and related businesses.

Financial Impact of the Transaction

Proceeds and Cash Flow Guidance

The transaction will generate proceeds of around €1 billion ($1.2 billion) for the German sports car manufacturer.

The company said the deal would help lift its 2026 automotive net cash flow margin forecast to 5.5%-7.5%, from 3%-5% previously. Porsche plans to allocate €250 million of the proceeds to further fund pension obligations.

Strategic Refocus and Market Challenges

The disposal forms part of Porsche's broader effort to focus on its core automotive business as the luxury carmaker faces weaker demand in China and a slower-than-expected transition to electric vehicles, issues that have pressured earnings across the European auto sector.

Background and Future Leadership

Porsche's Previous Stakes

Porsche had held a 45% stake in Bugatti Rimac and a 20.6% stake in Rimac Group after helping establish the Bugatti Rimac joint venture in 2021.

Management Changes

Founder Mate Rimac will assume the role of president of Bugatti Automobiles as part of a management reshuffle, while former Rimac Technology executive Marko Brkljačić is expected to join the company as chief operating officer.

Future Control of Bugatti Rimac

Following the completion of the transaction, Rimac Group is set to take full control of Bugatti Rimac alongside its new investors.

Additional Information

($1 = 0.8600 euros)

(Reporting by Maria Rugamer. Editing by Mark Potter)