Volkswagen (VW) Group and Porsche have officially divested their stakes in the French hypercar brand Bugatti, reducing their ownership to 0%. This move grants Mate Rimac, founder of electric car maker Rimac and CEO of Bugatti, complete control over the brand's future direction.
The agreement, initially announced in April, saw a consortium of investors, including HOF Capital, BlueFive Capital, and other investment funds from the US and Europe, acquire a 21% stake in Rimac Group from Porsche. Concurrently, they also took over the remaining 45% stake in the Bugatti Rimac joint venture. This transaction marks a significant turning point for the automotive industry.
For over 18 months, Mate Rimac actively sought greater control over Bugatti's future. He previously expressed reservations about the complex long-term decision-making and investment processes, where every idea required approval from the Porsche-Piëch family. For an entrepreneur who prioritizes initiative and speed, this presented a considerable obstacle.
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Mate Rimac at a car event in the US in 2024. *Photo: Mate Rimac* |
With the deal finalized, Mate Rimac can now shape Bugatti's trajectory with greater autonomy. Christophe Piochon, president of Bugatti Automobiles and chief operating officer (COO) of Bugatti Rimac, will step down, allowing Mate Rimac to assume the role of Bugatti chairman. Additionally, Marko Brkljačić, former COO of Rimac Technology, will become the new COO of Bugatti Rimac.
Porsche's financial gains
Porsche did not leave empty-handed. The German automaker announced it received one billion euro (approximately 1.16 billion USD) from the transaction.
This divestment aligns with Porsche's broader strategy to concentrate on its core oto business. The luxury car manufacturer currently faces declining demand in China and a slower-than-anticipated transition to electric vehicles, issues that are pressuring profitability across the European automotive industry.
Previously, Porsche held a 45% stake in Bugatti Rimac and a 20,6% stake in Rimac Group, following its support in establishing the Bugatti Rimac joint venture in 2021. The initial goal was to leverage Rimac's capabilities to develop an all-electric Bugatti hypercar. However, Mate Rimac ultimately led the development of the V16-powered Tourbillon model.
Porsche stated that the agreement is expected to raise its 2026 cash flow margin forecast for oto to 5.5%-7.5%, up from the previous 3%-5%. The company plans to allocate 250 million euro from the proceeds to continue funding pension obligations.
By My Anh (Reuters)
