Finance
Porsche, Under Pressure to Cut Costs, Divests From Iconic Italian Sportscar Maker Bugatti
Published by Global Banking & Finance Review®
Posted on April 24, 2026
3 min readLast updated: April 24, 2026
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Porsche is selling its 45 % stake in Bugatti Rimac and 20.6 % in Rimac Group to a consortium led by HOF Capital and involving BlueFive Capital, as it shifts focus to its core business amid deep profit pressure.
Porsche, under pressure to cut costs, divests from sportscar maker Bugatti
Porsche Sells Stakes in Bugatti and Rimac Amid Financial Pressures
(Corrects headline to remove reference to Italy)
Details of the Sale Agreement
DUBAI/FRANKFURT April 24 (Reuters) - Porsche has agreed to sell its stakes in sportscar makers Bugatti and Rimac to a consortium led by a U.S. fund co-founded by a scion of Egypt's billionaire Sawiris family, one of the co-investors said in a statement on Friday.
Under the deal, Porsche will divest a 45% stake in Bugatti Rimac, the joint venture hosting the brand, as well as a 20.6% stake in Rimac Group, said BlueFive Capital, one of the acquiring investors.Â
While the investment firm did not disclose the financial terms for the deal, Reuters reported in 2022 that Croatia's Rimac had a valuation of over 2 billion euros ($2.34 billion).
Statements from Porsche Leadership
"In setting up the joint venture Bugatti Rimac together with Rimac Group, we successfully laid the foundation for Bugatti’s future," Porsche CEO Michael Leiters said in the statement.
"Now, with the sale of our stake, we are focusing Porsche on the core business."
Porsche's Financial Challenges
Background of the Joint Venture
PORSCHE UNDER PRESSURE TO CUT COSTS, FREE UP CAPITAL
Porsche AG formed the joint venture with Rimac in 2021, with the German automaker's then CEO Oliver Blume touting it as a marriage of Bugatti's expertise in hypercars with Rimac's innovative strength in the field of electric mobility.
Declining Profit Margins and Market Pressures
Since then, however, Porsche has become a burden for parent Volkswagen, with profit margins crashing to a mere 1.1% last year, down from 14.1% in 2024, as the company was squeezed by U.S. tariffs and falling demand in China.
Now, Leiters, who took over as CEO at the beginning of the year, is under pressure to cut costs and free up capital.Â
Ongoing Negotiations and Investor Details
Rimac said in November that it was in talks with Porsche over the structure of the joint venture.
BlueFive Capital, which has $15 billion in assets under management, said on Friday it was one of the investors in the consortium led by HOF Capital, a U.S.-based fund co-founded by Onsi Sawiris.Â
Launched in November 2024, BlueFive Capital has offices across the Gulf, in London and Beijing and offers private equity, real estate, infrastructure and financial products to private wealth, institutional and retail clients.
Future Outlook for Bugatti Rimac
Rimac Group is set to take control of Bugatti Rimac and form a strategic partnership with BlueFive Capital and HOF Capital "to support its continued growth," when the deal is completed, BlueFive Capital said in a statement.
Additional Information
($1 = 0.8560 euros)
(Reporting by Federico Maccioni in Dubai and Christoph Steitz in Frankfurt; Editing by Joe Bavier)
Key Takeaways
- •Porsche to divest minority stakes in Bugatti Rimac (45 %) and Rimac Group (20.6 %) to consortium led by U.S. fund HOF Capital, with BlueFive Capital as investor. Sources: Reuters, article.
- •The joint venture Bugatti Rimac was formed in 2021, with Rimac already majority owner (55 %). Porsche’s exit consolidates control under Rimac and the investor group. Sources: Wikipedia, Reuters context.
- •Porsche’s urgency to cut costs comes amid a collapse in profit margins—from around 14 % to near 1 %—driven by U.S. tariffs, EV strategy setbacks, and slumping demand in China. Sources: Reddit‑cited VW report, Reuters article.
Frequently Asked Questions about Porsche, under pressure to cut costs, divests from iconic Italian sportscar maker Bugatti
1Why is Porsche selling its stake in Bugatti Rimac?
Porsche is selling its stake to cut costs and free up capital as it faces pressure from falling profit margins and market challenges.
2Who is acquiring Porsche’s stakes in Bugatti Rimac and Rimac Group?
A consortium led by HOF Capital, co-founded by Onsi Sawiris, along with BlueFive Capital and other investors.
3How much stake is Porsche divesting in the deal?
Porsche is divesting a 45% stake in Bugatti Rimac and a 20.6% stake in Rimac Group.
4What were the financial challenges faced by Porsche?
Porsche's profit margins dropped to 1.1% from 14.1% due to U.S. tariffs and falling demand in China.
5What role will Rimac Group play after the deal?
Rimac Group will take control of Bugatti Rimac and enter a strategic partnership with BlueFive Capital and HOF Capital.
