Controlled by Volkswagen, the German sports car manufacturer Porsche has decided to reverse its stake in the owner of Bugatti. The company will sell its 45% stake in Bugatti Rimac, a joint venture with the Croatian electric car company Rimac, to an investment fund led by the American firm HOF Capital.

The investment firm will also buy Porsche's 20.6% stake in the Rimac Group, a company responsible for manufacturing high-performance electric cars, according to the Financial Times . The financial details were not disclosed.

Porsche's exit comes at a time when CEO Michael Leiters is pursuing a restructuring strategy based on reducing ambitions regarding electric vehicles and increasing investments in gasoline and hybrid vehicles.

“As an initial investor in the Rimac Group, Porsche contributed significantly to the development of Rimac Technology, transforming it into a consolidated, leading automotive technology company. Now, with the sale of our stake, we demonstrate that Porsche will focus on its core business,” says Leiters, who took up the role at the automaker in January.

Porsche, headquartered in Stuttgart, Germany, saw its operating profit fall 93% last year, primarily driven by US tariffs and write-downs on its electric vehicle operations, which contributed to losses of €3.9 billion.

Bugatti Rimac was formed in 2021 when Volkswagen sold a majority stake in Bugatti to Rimac, which also manufactures electrical parts for other automakers such as BMW and Hyundai. The Croatian group was founded by Mate Rimac.

The joint venture unveiled its first electrified Bugatti supercar in 2024, the Tourbillon hybrid, which has a starting price of €3.8 million.

When Porsche formed the joint venture with Rimac, then-CEO Oliver Blume described the initiative as a combination of Bugatti's expertise in hypercars with Rimac's strength in electric mobility.

Since then, Porsche has become a burden for Volkswagen, with margins plummeting to 1.1% last year, compared to 14.1% in 2024.

Following the sale of Porsche's stake, HOF Capital, whose other investments include fintech Klarna and the Blank Street coffee chain, will become the largest shareholder in the Rimac Group after its founder. The deal also ends Volkswagen's ties with the Bugatti brand, which began in 1998.

Hisham Elhaddad, co-founder and managing partner of HOF Capital, also spoke about the fund's entry into the management of the luxury car manufacturer. “For over a century, Bugatti has stood out as a brand where tradition and innovation coexist at the highest level. We are proud to partner with Mate Rimac and his team to help shape the next chapter.”

BlueFive Capital, which has $15 billion in assets under management, is among the investors in the consortium led by HOF Capital, but stated that it invests only in Bugatti Rimac, and not in the Rimac Group itself.

Launched in November 2024, BlueFive Capital is based in the financial center of Abu Dhabi and has offices throughout the Persian Gulf, as well as in London and Beijing, offering private equity, real estate, infrastructure, and financial products.

European automakers have faced competition from Chinese manufacturers and the very tariffs imposed by Trump, which have affected exports, especially of luxury cars like Porsche, which are mostly manufactured in Europe.

The financial market did not react well to the announcement of the sale of Porsche's stake in Bugatti. Shares of the German automaker on the Frankfurt Stock Exchange were down 2.3% on Friday, April 24, around 5:30 pm (local time).

By 2026, the company's shares are projected to have fallen by 14%. Porsche has a market capitalization of €18.7 billion.