PORSCHE said on Wednesday it had completed the sale of its stakes in Bugatti Rimac and Rimac Group after receiving regulatory approvals, finalizing its exit from the Croatian electric hypercar maker and related businesses.
The transaction will generate proceeds of around 1 billion euros ($1.2 billion) for the German sports car manufacturer.
The company said the deal would help lift its 2026 automotive net cash flow margin forecast to 5.5 percent to 7.5 percent, from 3 percent to 5 percent previously. Porsche plans to allocate 250 million euros of the proceeds to further fund pension obligations.
The disposal forms part of Porsche’s broader effort to focus on its core automotive business as the luxury carmaker faces weaker demand in China and a slower-than-expected transition to electric vehicles, issues that have pressured earnings across the European auto sector.
Porsche had held a 45-percent stake in Bugatti Rimac and a 20.6-percent stake in Rimac Group after helping establish the Bugatti Rimac joint venture in 2021.
Founder Mate Rimac will assume the role of president of Bugatti Automobiles as part of a management reshuffle, while former Rimac Technology executive Marko Brkljačić is expected to join the company as chief operating officer.
Following the completion of the transaction, Rimac Group is set to take full control of Bugatti Rimac alongside its new investors.