Porsche exits Bugatti stake

German carmaker Porsche, a division of Volkswagen AG, announced on Friday that it has sold its remaining shares in luxury sports car manufacturer Bugatti, DPA reports, according to Agerpres.

Its 45% stake in the Bugatti Rimac joint venture will be sold to a consortium led by the HOF Capital fund, the parties announced on Friday. The transaction requires the approval of the relevant authorities.

As part of this transaction, Porsche is also selling its stake in Rimac Group. The German manufacturer recently owned 20.6% of the Croatian company specializing in electric sports cars.

The consortium that is to take over Porsche's stakes in Bugatti and Rimac Group also includes the Abu Dhabi-based BlueFive Capital fund, as well as institutional investors from the US and the EU.

Porsche, Rimac and the group of buyers did not provide details regarding the purchase price.

Following this transaction, the Volkswagen Group is completely exiting Bugatti's shareholding. Volkswagen acquired the rights to the prestigious French luxury brand in 1998 and relaunched it. In 2021, the Bugatti Rimac joint venture was established, in which Porsche held a 45% stake and the Rimac Group the remaining 55%.

In March, Porsche's new CEO, Michael Leiters, announced a major restructuring of the crisis-hit sports car and SUV manufacturer. Leiters said that the sale of the stake in Bugatti demonstrates the intention to focus Porsche on its core businesses.

Porsche has been going through a difficult period for some time. Business in China has stagnated, US tariff policies have caused significant costs, and Porsche's electric models have proven to be less popular than expected. The company has changed its strategy, focusing again on vehicles equipped with combustion engines, at a cost of about 2.4 billion euros.

• Volkswagen results affected by Porsche strategy change

Volkswagen, Europe's largest automaker, almost halved its profit last year, amid costs related to the change in strategy of its sports car division and the effects of US tariffs, according to DPA.

Net profit after tax fell by about 44% last year to 6.9 billion euros ($8 billion), from 12.4 billion euros in 2024, while revenue fell by 0.8% to about 322 billion euros, the German group announced on Tuesday.

Performance improved towards the end of the year compared with the first nine months of 2025. In the third quarter, the group reported losses of more than one billion euros.

Volkswagen has changed the strategy of its Porsche sports car division, extending the lifespan of its combustion-engine models, a cost that has hurt the parent company's bottom line. U.S. tariffs have also added to the cost burden.

Global vehicle deliveries also fell 0.5 percent last year to 8.98 million units.

In China, a major market for Volkswagen, sales fell about 8 percent to 2.69 million vehicles as competition from domestic automakers intensified. Sales in North America also fell 10.4 percent last year due to tariffs imposed by President Donald Trump.

By contrast, reported a 3.8 percent increase in sales in Europe to 3.38 million vehicles. In South America, growth was even stronger, at 11.6 percent to 663,000 units.