Porsche has announced it is ready to sell its stakes in sports car manufacturers Bugatti and Rimac. It will do so to a consortium led by the US fund HOF Capital, linked to the Egyptian billionaire Sawiris family. The decision comes at a delicate time for the German manufacturer. The new CEO, Oliver Leiters, is trying to bring about a turning point for a brand that has shown in recent months signs of strong difficulty.
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Porsche sells its stake in Bugatti-Rimac
As part of the agreement, Porsche will transfer its 45% stake in the Bugatti Rimac joint venture, which includes both Bugatti (controlled through the French company) and a stake in Rimac, along with the 20.6% stake held in the Croatian company. According to Reuters, citing a source familiar with the matter, the change of ownership, whose financial details have not been disclosed, would be linked to an overall valuation of over 1 billion dollars for the joint venture.
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Sharp drop in profitability
Porsche and Bugatti Rimac have chosen not to comment further, while Leiters explained that the operation allows Porsche to focus on its “core business”, transferring energy and capital related to projects now considered secondary to the priority of stabilizing the parent company elsewhere. Porsche’s exit from this stake comes as the company reviews its strategy after a sharp drop in profitability: operating profit decreased by 93% last year, worsening the crisis of the brand, majority-controlled by Volkswagen. Leiters, who took over at the beginning of the year, is under pressure to reduce costs and free up resources.
