Porsche has executed a strategic reversal on one of its recent high-profile investments, announcing that it has reached an agreement to sell its stake in Bugatti Rimac to an international consortium.

The German sports car manufacturer said the decision forms part of a broader effort to streamline operations and reduce costs amid ongoing financial uncertainty in the global automotive sector.

Bugatti Rimac, the hypercar joint venture combining Bugatti and Croatian EV maker Rimac, has been central to efforts to develop next-generation performance and electric hypercars.

Porsche announced early Friday that it has reached an agreement to sell its stake in Bugatti Rimac to a consortium led by New York-based venture capital firm HOF Capital, with BlueFive Capital serving as the largest investor in the group.

The German automaker has held a 45 percent stake in Bugatti Rimac since the joint venture was established in 2021.

Under the terms of the deal, Porsche will also divest its 20.6 percent stake in the Rimac Group, marking a significant exit from the Croatian EV firm.

The transaction effectively ends Volkswagen Group’s nearly three decades of influence over Bugatti.

The conglomerate, which owns a majority stake in Porsche, acquired the French hypercar brand in 1998 and has since played a key role in shaping its modern identity and positioning in the ultra-luxury performance segment.

“Porsche has been a crucial partner, and we are deeply grateful for their role in establishing Bugatti Rimac,” Mate Rimac, the founder of Rimac, said in a joint statement. “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.”

Porsche did not provide a reason for its decision to sell its stake in Bugatti Rimac at this time.