Porsche sells Bugatti brand for €1 billion

Porsche got rid of shares in Bugatti Rimac and Rimac Group companies. The deal was closed on September 9 after regulatory approval, according to the German edition of Handelsblatt.

According to the official announcement, Porsche plans to focus on its core business. The sale will bring the company about €1 billion euros in revenue. The Porsche AG Group will allocate 250 million euros of this amount to further finance its pension obligations.

In addition, the company predicts an increase in the marginality of the Porsche automotive business by the end of 2026 from 3-5% to 5.5–7.5%.

The deal was announced back in April. An investment consortium led by the venture capital fund HOF Capital has agreed to acquire Porsche shares in Rimac Group and Bugatti Rimac. At the same time, Rimac Group remains the 55% majority shareholder of the company.

Christophe Piochon will step down as president of Bugatti Automobiles and Chief Operating Officer of Bugatti Rimac. Mate Rimac himself, according to the group's official announcement, will assume the position of president of Bugatti Automobiles, and Marko Brkljacic, former chief operating officer of Rimac Technology, will become chief operating officer.

Bugatti is currently focused on producing 250 copies of the Tourbillon hypercar with a naturally aspirated V16 engine.

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On August 7, Volkswagen AG's largest shareholder, Porsche Automobil Holding SE, called on the automaker to accelerate measures to reduce costs and overcapacity amid declining competitiveness. In the first half of the year, Porsche SE recorded a net loss of 2.22 billion euros from its share.