Porsche sells stakes in Bugatti, Rimac amid profits slump

German luxury carmaker Porsche has agreed to sell its stakes in high-end sports car brands Bugatti and Rimac to a consortium led by US-based HOF Capital, which is linked to Egypt’s billionaire Sawiris family.

Under the deal, Porsche will offload its 45% stake in Bugatti Rimac—the joint venture formed in 2021 with the Croatian brand Rimac—as well as its 20.6% holding in Rimac Group to the HOF Capital-led consortium, as Investing.Com reports. 

Financial terms of the transaction were not disclosed. However, Reuters previously reported in 2022 that Rimac was valued at more than €2 billion, while a source familiar with the matter said Bugatti Rimac is valued at over $1 billion.

The move comes as Porsche reassesses its strategy following a sharp drop in profitability, including a 93% plunge in operating profit in 2025 and declining group margins.

"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 a joint statement. "Now, with the sale of our stake, we are focusing Porsche on the core business."

Founded in the 1930s in Stuttgart—where it is still headquartered—Porsche has been part of Volkswagen AG since 2009. Bugatti, meanwhile, was established in 1909 by Italian-born industrial designer Ettore Bugatti. Porsche acquired a major stake in the struggling French marque in 1998 and played a key role in reviving the brand.

Following news of the sale, Porsche shares slipped by 1.5% on the final trading day of the week.

By Nazrin Sadigova