Porsche exits Bugatti and Rimac completely amid falling profits

German premium car brand Porsche has agreed to sell its stakes in sportscar makers Bugatti and Rimac. The company is scaling back ambitions to produce high-tech electric cars and is struggling with falling sales, the Financial Times noted. Porsche shares fell 1.6 percent in trading in Frankfurt on April 24.

Sports car maker Porsche will transfer a 45% stake in Bugatti Rimac - a joint venture with electric hypercar maker Rimac - to a group of investors led by US investment firm HOF Capital. The consortium will also acquire Porsche's 20.6% stake in the Rimac Group itself. The financial details of the deal were not disclosed by the parties. Reuters reported in 2022 that Rimac was valued at more than €2 billion euros.

Porsche is getting rid of these assets as CEO Michael Leiters pursues a business recovery strategy. It is based on moderation in "electric" ambitions and increased investment in gasoline and hybrid cars, explains the FT. "By selling our stake, we are focusing Porsche on its core business," the Porsche chief said

Due to slowing growth, rising costs and negative impact on margins caused by tariffs and geopolitical turmoil, pressure on the auto industry is growing and forcing companies to consolidate, notes CNBC. According to Bain & Company, deal volume in the auto and mobility industry rebounded last year, topping $35 billion by the third quarter.

The Bugatti Rimac joint venture was formed in 2021 when Porsche's parent company Volkswagen sold a majority stake in Bugatti to Rimac. The then CEO of the German premium automaker, Oliver Blum, called it "a union of Bugatti's expertise in building hypercars and Rimac's innovative power in the field of electric mobility," Reuters writes.

However, Porsche has since become a burden on parent Volkswagen, the agency adds. European automakers are struggling with competition from Chinese factories and U.S. duties that have hit exports - especially Porsche luxury cars, most of which are made in Europe, the FT says.

Porsche's operating profit in 2025 has fallen 93%. U.S. duties and the write-off of losses from the electric car business led to a €3.9 billion impairment of assets. Now Leiters, who took over as CEO at the beginning of the year, needs to cut costs and free up capital.

The company also plans to sell its Everllence marine engine and heat pump division, and has expressed a willingness to bring in outside investors for its unmanned cab business and its PowerCo battery cell business, the FT points out.

This article was AI-translated and verified by a human editor