Porsche to Divest Stakes in Bugatti-Rimac and Rimac Group, Sharpening Core Focus
Stuttgart, Germany – Porsche AG, the venerable German luxury sports-car maker, is reportedly preparing to sell its stakes in both the Bugatti Rimac joint venture and its significant holding in the parent Rimac Group. This strategic divestment signals a clear shift for Porsche as it intensifies its focus on core competencies and pushes through an ambitious internal turnaround program.
Sources close to the matter suggest the move is part of a broader strategic realignment within the Volkswagen Group, aiming to streamline portfolios and optimize resource allocation. For Porsche AG, this means doubling down on its own brand's future, particularly in e-mobility, digitalization, and its high-performance sports car and SUV segments. The turnaround program, initiated to boost efficiency and profitability post-IPO, appears to be driving decisions that prioritize capital for internal development rather than minority stakes in external ventures.
The relationship between Porsche and the Croatian hypercar and technology specialist Rimac began in 2018 with an initial investment, which grew to a substantial 24% stake in Rimac Group. This partnership was initially hailed as a critical step for Porsche to gain access to cutting-edge electric powertrain and battery technology. Subsequently, in 2021, the iconic French brand Bugatti was folded into a new joint venture, Bugatti Rimac, with Rimac Group holding 55% and Porsche AG receiving 45% in exchange for its Bugatti shares. This structure essentially gave Rimac operational control while Porsche maintained a significant influence.
However, industry insiders now suggest that while the technological insights gained were valuable, the long-term strategic fit for these minority holdings has evolved. "Porsche's core mission is to build the best sports cars in the world, whether they're internal combustion or electric," said one analyst familiar with the Volkswagen Group's strategy. "Managing a significant stake in a separate hypercar entity, even one as innovative as Rimac, likely presents a distraction from their own aggressive EV roadmap, which includes the upcoming electric Macan and 718 models."
The divestment is expected to free up significant capital, potentially running into the high nine figures, which can be reinvested directly into Porsche AG's own product development, manufacturing capabilities, and global expansion. It also simplifies the corporate structure, aligning with the post-IPO mandate for greater transparency and efficiency.
For Rimac Group and Bugatti Rimac, this development opens a new chapter. While Porsche's exit means losing a powerful strategic partner and investor, Rimac's robust technology division, which supplies components to numerous global automakers, remains a significant asset. The future ownership structure of the 24% stake in Rimac Group and the 45% stake in Bugatti Rimac is yet to be revealed, but it could attract new investors keen on the high-growth e-mobility and hypercar segment.
This move underscores a broader trend in the automotive industry where even established players are making tough choices about their portfolios to navigate the costly transition to electric vehicles and software-defined cars. Porsche AG's decision to streamline and focus intensely on its own brand's future signals a pragmatic approach to securing its long-term leadership in the luxury performance sector.
