Several automakers are facing an uncertain future, squeezed between weak consumer demand for electric vehicles and relentless government pressure to transition toward battery-powered transportation.
Now, many are reverting to producing cars powered by internal combustion engines and hybrids, with Porsche among them. The company is currently experiencing a major restructuring after its EV policies backfired significantly.
Porsche CEO Dr. Michael Leiters, who took over in January this year, outlined Strategy 2035, which will see an expansion of Porsche’s product portfolio and improve cash flow.
Now, nearly a month after revealing Strategy 2035, Porsche announced it has agreed to sell its stake in Bugatti Rimac and Rimac Group to a consortium led by New York-based investment firm HOF Capital.
What is Strategy 2035?
As part of a long-term restructuring, Porsche will expand its portfolio within the next decade to segments with higher margins that sit above Porsche’s two-door sports cars and the Cayenne SUV. A report states that the company intends to strengthen its financial position, especially after a troublesome 2025, when it suffered losses and incurred huge expenses after backtracking on its EV strategy.
Last year, Porsche was struck with a €3.9 billion ($4.5 billion) expenditure to realign product strategy and rescale the company, €700 million ($820 million) of which were additional expenses from battery-related investments, while U.S. tariffs cost another €700 million ($820 million), since Porsche imports all its vehicles into America.
Consequently, group sales revenue dropped from €40.08 billion ($46.98 billion) in 2024 to €36.27 billion ($42.51 billion) in 2025, while operating profit fell from €5.64 billion ($6.61 billion) to €413 million ($484 million).
In the wake of Porsche’s struggles, Leiters revealed Strategy 2035 this year. He said in a statement:
“We are considering the expansion of our product portfolio in order to grow in higher-margin segments. In doing so, we are looking at models and derivatives both above our current two-door sports cars and above the Cayenne.”
“With Strategy 2035, we want to lay the foundations for sustainably strong cash flow, strong results and margins that are appropriate for Porsche.”
Sale of Stakes in Bugatti Rimac and Rimac Group
Bugatti Rimac was established through a partnership between Porsche and the Rimac Group in 2021, with Porsche holding a 45% stake. In addition, Porsche owned a 20.6% stake in the Rimac Group itself.
However, on 24 April, Porsche announced it would divest all its stakes to the HOF Capital-led consortium, consisting of BlueFive Capital and institutional investors across the U.S. and Europe.
Following the sale of the stakes, Rimac Group will take control of Bugatti Rimac and form a strategic partnership with HOF Capital and BlueFive Capital. HOF Capital will also join Rimac Group as the largest shareholder.
Leiters said in a statement that the sale of Porsche’s stakes will allow the brand to focus on its “core business.” He said:
“In setting up the joint venture Bugatti Rimac together with Rimac Group, we successfully laid the foundation for Bugatti’s future. And as an early-stage investor of Rimac Group, Porsche made a significant contribution to developing Rimac Technology into an established Tier-1 automotive technology company. Now, with the sale of our stake, we demonstrate, that we will focus Porsche on the core business. We would like to thank Mate Rimac and his team for the constructive and trusting cooperation over the past years.”
Mate Rimac, CEO of Bugatti Rimac, added:
“Porsche has been a crucial partner, and we are deeply grateful for their role in establishing Bugatti Rimac. With the strong foundations their support has provided, we now have a structure that allows us to execute even faster on our long-term vision. We look forward to our collaboration with our new partners.”
Completion is expected before year-end. The financial terms of the transaction have been kept confidential.