Bugatti Breaks Away from Volkswagen Group as Porsche Sells Stake for Independent Operation

Porsche recently announced it will sell its 45% stake in the Bugatti Rimac joint venture and its 20.6% stake in Rimac Group to the BlueFive Capital consortium. Upon completion of the transaction, Rimac Group will gain majority control of Bugatti Rimac, and Bugatti will end its affiliation with the Volkswagen Group—dating back to 1998—and operate independently. The Bugatti Rimac joint venture was established in 2021 through a partnership between Porsche and Rimac, with the goal of transforming Bugatti into an electric hypercar manufacturer. However, tensions arose in the collaboration as Mate Rimac, founder of Rimac, insisted on retaining internal combustion engine technology, which conflicted with Volkswagen Group’s overarching electrification strategy. Additionally, Porsche assessed that the joint venture had limited profitability, and selling its stakes will help reduce R&D expenditures, free up capital, and allow the company to focus on its core business.