On September 9, German luxury sports car manufacturer Porsche AG announced that, after receiving regulatory approval, it had completed the sale of its shares in Bugatti Rimac and Rimac Group.
Bugatti Rimac is the operating entity behind the legendary hypercar brand Bugatti.
The deal will bring Porsche proceeds of approximately €1 billion, of which €250 million will be used to fund pension obligations.
Porsche said the net cash flow margin forecast for its automotive business published in its half-year financial report did not take into account the impact of the divestment. Taking into consideration the cash inflow from this transaction and the additional funding for pension obligations, the net cash flow margin for the automotive business for full-year 2026 is expected to rise to 5.5%–7.5% (previously forecast at 3%–5%).
This divestment is part of Porsche's broader efforts to focus on its core automotive business. The company is grappling with weakening demand in the Chinese market and a slower-than-expected electrification transition, issues that are also weighing on profitability across the European auto industry.
In April this year, a consortium led by HOF Capital, with BlueFive Capital as the largest investor and comprising other institutional investors from the US and Europe, agreed to acquire all of Porsche's shares in Rimac Group and Bugatti Rimac.
With the new shareholder structure now formally in place, Bugatti Rimac will further implement the long-term strategy and operational vision that Mate Rimac set for Bugatti when he became CEO of Bugatti Rimac in 2021. Mate Rimac will be supported by a newly restructured management team:
- Christophe Piochon will step down as President of Bugatti Automobiles and Chief Operating Officer of Bugatti Rimac.
- Mate Rimac will take over as President of Bugatti Automobiles.
- Marko Brkljačić, formerly Chief Operating Officer of Rimac Technology, plans to join the Bugatti Rimac management team as Chief Operating Officer.
- Hendrik Malinowski, currently General Manager of Bugatti Automobiles, will become Chief Commercial Officer of the brand.
Rimac Group was founded by Mate Rimac in 2009 and is headquartered in Croatia, where it develops and produces electric sports cars, powertrains and battery systems. The group's first model, the Concept One, is the world's fastest production electric car.
In 2021, Porsche, Rimac Group and Bugatti formed the Bugatti Rimac joint venture, with Porsche holding 45% and Rimac Group 55%; after the merger, Bugatti and Rimac each continued to operate independently. Bugatti had previously been managed by Germany's Volkswagen Group, which acquired Bugatti in 1998 for $50 million after buying Rolls-Royce and Lamborghini.
Porsche has partnered with Rimac since 2018 and is one of the startup's long-term shareholders. Currently, Porsche holds a total of 20.6% of Rimac Group. In 2022, LuxeCO reported that Rimac had completed a €500 million Series D funding round, at which point the company was valued at more than €2 billion.
Related LuxeCO coverage:
- Bugatti changes hands as Porsche sells all shares in the related joint venture
- Porsche-backed Croatian electric hypercar maker Rimac completes €500 million Series D led by SoftBank and Goldman Sachs
- Croatian electric hypercar maker Rimac and former Volkswagen-owned Bugatti form joint venture, with Porsche holding 45%
｜Source: official press release, previous LuxeCO reports
｜Image: company website
｜Editor: LuxeCO
