Volkswagen and Porsche Sell Remaining Bugatti Stakes in €1 Billion Deal
Volkswagen and Porsche have completed the sale of their remaining Bugatti-Rimac stakes for €1 billion, ending a 28-year German ownership of the French hypercar maker to focus on EV development.
Volkswagen Group and Porsche have finalized the sale of their remaining stakes in the Bugatti-Rimac joint venture in a transaction valued at approximately €1 billion. This marks the end of a 28-year chapter during which the iconic French hypercar manufacturer from Molsheim remained under German control. Both companies are now seeking to reallocate resources and focus on the automotive industry's primary challenge: the transition to electric vehicles.
The Shift Toward Electric Mobility
According to industry reports, Volkswagen and Porsche transferred their remaining shares in the venture to the Rimac Group and an investor consortium. This move signals a significant strategic pivot after years in which Bugatti was associated with massive investments in extreme-performance vehicles, accompanied by substantial financial losses.
The Veyron, launched in 2005, became one of the brand's most prominent symbols, yet its development cost roughly $1.62 billion. This expenditure was distributed across only about 450 manufactured vehicles, with Volkswagen absorbing an estimated loss of between $4.6 million and $6.25 million on every single car sold. In total, the group's losses from owning Bugatti exceeded $2.3 billion.
Transition Through the Chiron and Tourbillon
Subsequently, the Chiron was introduced in 2016 with a price tag of around €3 million alongside various special editions, helping to somewhat mitigate the losses. Since 2005, fewer than 1,100 Bugatti cars have been produced worldwide.
"The transaction allows the group to reduce exposure to a luxury brand that required significant investments and redirect the proceeds toward developing mass-market electric vehicles."
In 2021, the Bugatti-Rimac joint venture was established, with Croatia's Rimac holding a 55% stake and Porsche holding 45%. CEO Mate Rimac sought to preserve Bugatti's unique heritage rather than turning it into an entirely battery-electric brand. This philosophy birthed the Tourbillon, which pairs a gasoline V16 engine with three electric motors and a 24.8 kWh battery. The hypercar delivers a combined output of 1,800 horsepower, accelerates from 0 to 100 km/h in under two seconds, reaches a top speed of 455 km/h, and offers a 60 km electric range with a starting price of roughly $4.1 million.
Financial Pressures and Future Focus
The separation from Bugatti comes at a time when Volkswagen and Porsche face severe financial pressures and broad cost-cutting measures driven by the EV transition. The €1 billion infusion provides the automotive giants with vital capital to accelerate their core electrification strategies.
