Porsche Sells Stake in Bugatti for 1 Billion Euros

Porsche will receive approximately 1 billion euros from the sale of its stake in Bugatti Rimac as part of a strategy to cut costs and restructure its business. It is expected that the net cash flow margin in the automotive sector will reach 7.5% this year, instead of the previously forecasted 5%. 250 million euros of the funds will be allocated to finance pension obligations. The Porsche and Piëch families are optimizing their portfolio due to weak demand for luxury electric vehicles and declining sales in China. Bugatti operated as a joint venture with Rimac Group, where Porsche held 45% and Rimac 55%. Now, Porsche has completely exited the capital of Bugatti Rimac, selling its 20.6% stake in Rimac. Porsche's shares rose by 0.6% following the news. Volkswagen is also seeking ways to cut costs and is considering the sale of other assets, including Ducati. Analysts suggest that an IPO for Lamborghini and the sale of a stake in Traton SE for around 2.4 billion euros are possible. Previously, Porsche announced job cuts due to a 91% drop in profits.