Porsche Sells Bugatti and Rimac Stakes, Ending Volkswagen's 28-Year Control

Porsche has signed an agreement to sell its entire 45% stake in Bugatti Rimac and its 20.6% stake in Rimac Group to an international consortium led by HOF Capital. The transaction values Bugatti Rimac at approximately €1 billion (around RMB 7 billion) and is expected to close by the end of 2026. Upon completion, Rimac Group will hold a 55% stake in Bugatti Rimac and assume full operational control, while HOF Capital will become one of Rimac Group’s largest shareholders, holding a stake comparable to that of founder Mate Rimac. This sale marks the formal end of Volkswagen Group’s 28-year ownership of Bugatti, which began with its acquisition of the brand in 1998. Porsche’s move aims to alleviate financial pressure and refocus on its core business. In fiscal year 2025, Porsche reported a 9.5% year-over-year decline in revenue and a 92.7% drop in operating profit, underscoring its urgent need to raise capital and streamline its asset portfolio. The buyer, HOF Capital, is a New York–based venture capital fund managing over $7 billion in assets, with investments spanning numerous tech unicorn companies. The largest investor in the consortium is BlueFive Capital, based in Abu Dhabi. Founded in 1909, Bugatti has changed hands multiple times and has been part of the Volkswagen Group since 1998, serving as a key pillar of its luxury vehicle strategy.