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Porsche: Sells Bugatti Rimac Stake

by Chief Editor
written by Chief Editor

The Era of Strategic Divestment: Why Legacy Automakers are Pivoting

The automotive landscape is undergoing a seismic shift. When a titan like Porsche decides to fully divest its equity stakes in Bugatti Rimac and the Rimac Group, it isn’t just a corporate transaction—it is a signal of a broader trend. We are seeing a move toward “core business” specialization.

From Instagram — related to Rimac, Bugatti

Porsche’s decision to exit these ventures comes amid significant financial headwinds. The company recently reported a staggering 92.7 percent drop in operating profit, resulting from a €3.9 billion hit tied to the costs of shifting its electric vehicle (EV) strategy. This highlights a growing trend: the immense cost of the EV transition is forcing even the wealthiest automakers to trim their portfolios.

By selling its 45 percent stake in Bugatti Rimac and its 20.6 percent stake in Rimac Group to a New York-based consortium, Porsche is prioritizing its primary operations over the high-risk, high-reward world of ultra-luxury hypercars.

Did you know? Bugatti Rimac was established as a joint venture in 2021, with the Croatian Rimac Group holding a 55 percent majority stake and Porsche holding 45 percent.

The “Silicon Valley-fication” of the Hypercar

One of the most intriguing trends emerging from this divestment is the entry of tech-heavy venture capital into the automotive space. The consortium leading the acquisition is headed by HOF Capital, a New York-based investment firm with a portfolio that reads like a directory of future tech: SpaceX, Anthropic, and Epic Games.

The "Silicon Valley-fication" of the Hypercar
Rimac Bugatti Capital

This suggests that the future of brands like Bugatti and Rimac may no longer be tied to traditional automotive manufacturing logic. Instead, they are being treated as technology platforms. When a company invested in AI (Anthropic) and aerospace (SpaceX) takes a leading role in a hypercar manufacturer, we can expect a surge in:

  • Advanced Computational Design: Integrating AI into aerodynamics and chassis engineering.
  • Aerospace-Grade Materials: Leveraging partnerships to bring space-age composites to the road.
  • Software-Defined Performance: A shift toward vehicles that evolve via over-the-air updates and complex algorithms.

With HOF Capital set to become the largest shareholder alongside Mate Rimac, the synergy between venture capital and hyper-engineering will likely accelerate the development of next-generation powertrains.

Navigating the Global Economic Minefield

The divestment also reflects the brutal reality of the current global market. Porsche’s strategy shift isn’t happening in a vacuum; it is a response to external pressures that are affecting the entire Volkswagen Group ecosystem.

Two primary factors are driving this trend: US tariffs and fierce competition in China. For legacy brands, maintaining a footprint in every luxury segment while fighting a price war in Asia and navigating trade barriers in North America is becoming unsustainable.

The trend here is a move toward “lean luxury.” Automakers are realizing that owning the entire vertical—from mass-market EVs to million-dollar hypercars—creates too much financial exposure. By handing the reins of Bugatti Rimac to a specialized group, the brand can pursue aggressive innovation without being tethered to the quarterly earnings pressures of a massive parent corporation.

Pro Tip: For investors and enthusiasts, maintain a close eye on “Tier-1 automotive technology companies.” As seen with Rimac Technology, the real value is shifting from the badge on the hood to the battery and powertrain systems that power the vehicle.

The Future of Production: Decentralized Excellence

Despite the change in ownership, the operational model of Bugatti Rimac points toward a trend of decentralized, specialized production hubs. The company maintains a dual-facility approach with production in Zagreb, Croatia and Molsheim, France.

Porsche sells stake in sportscar maker Bugatti

This model allows a brand to maintain its heritage (the French craftsmanship of Bugatti) while integrating cutting-edge electrical engineering (the Croatian innovation of Rimac). We expect other luxury brands to adopt this “Heritage + Tech Hub” model to avoid the stagnation that often comes with centralized corporate bureaucracy.

Frequently Asked Questions

Who now owns the stakes previously held by Porsche?

Porsche has agreed to sell its equity stakes in Bugatti Rimac and Rimac Group to a New York-based consortium led by HOF Capital, which includes BlueFive Capital and various institutional investors.

Frequently Asked Questions
Rimac Bugatti Porsche

Why did Porsche decide to leave Bugatti Rimac?

Porsche is refocusing on its core business following a significant drop in operating profit and the high costs associated with shifting its electric vehicle strategy, as well as challenges with US tariffs and competition in China.

Will Bugatti and Rimac still operate as separate brands?

Yes, Rimac Automobili and Bugatti Automobiles continue to operate as separate brands, and manufacturers.

What was the first joint project between Bugatti and Rimac?

The first joint car presented by the venture was the Bugatti W16 Mistral.

What do you think about the shift toward venture capital ownership in the hypercar world? Will the influence of firms like HOF Capital push Bugatti and Rimac to new heights, or will the loss of Porsche’s automotive legacy be felt? Let us know in the comments below!

Want more insights into the future of automotive technology? Explore our latest coverage or subscribe to our newsletter for industry deep-dives.

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Tech

Ford Mustang GTD Is The Fastest American Car At The Nürburgring With 6:40 Lap

by Chief Editor
written by Chief Editor

The American Supercar Arms Race: Beyond the Lap Time

The battle for dominance at the Nürburgring has evolved into more than just a marketing exercise; it is a high-stakes engineering war. The recent emergence of the Ford Mustang GTD Competition, which clocked a blistering 6:40.835 lap time, signals a shift toward “Competition” grade street-legal cars that blur the line between production vehicles and dedicated track monsters.

From Instagram — related to Competition, Ford

This trend is driven by a fierce rivalry between Ford and Chevrolet. After the Corvette ZR1X claimed the spotlight with a 6:49.275 run, Ford responded by not just beating the record, but obliterating it by more than eight seconds. This “game on” mentality suggests that we are entering an era where American manufacturers will increasingly release ultra-limited, serialized versions of their flagship cars to maintain prestige on the global stage.

Did you know? The Ford GT Mk IV holds the record for the fastest track-only American car at the Nordschleife with a time of 6:15.977, making it the fastest combustion-engine-only car to ever lap the iconic German track.

Engineering the Edge: The Future of Track-Focused Street Cars

To achieve a sub-6:41 lap time, the Mustang GTD Competition moved beyond simple tuning. The trend is moving toward “ground-up builds” that happen to wear a production car’s body. By utilizing an evolution of the supercharged 5.2-liter V8 engine—pushing power beyond the standard 815-hp output—Ford has set a fresh benchmark for internal combustion performance.

Weight Reduction and Exotic Materials

Future trends in high-performance street cars will likely prioritize extreme weight shedding. The GTD Competition implements this through:

Ford Mustang GTD: Faster Than A GT3 RS? | Stig Laps | 4K
  • Magnesium wheels to reduce unsprung mass.
  • Carbon bucket seats for structural rigidity and weight savings.
  • Lighter dampers to improve suspension response.

Aerodynamic Warfare

We are seeing a transition toward aggressive, active-style aerodynamics on street-legal cars. The inclusion of front dive planes, an updated rear wing, and rear carbon-fiber aero discs is designed to glue the car to the road. As these technologies trickle down, expect to see more production cars utilizing these “competition” aero packages to handle the immense cornering forces of the Green Hell.

Pro Tip: When evaluating track-focused cars, look beyond the horsepower. The real gains in lap times, as seen with the GTD Competition’s 11-second improvement over the standard GTD, arrive from the synergy of weight reduction, tire grip, and aerodynamic downforce.

The Global Battlefield: American Muscle vs. European Precision

Even as Ford and Chevy fight for American supremacy, the broader trend is a clash of philosophies. The American approach favors massive displacement and raw power, whereas European leaders like Mercedes-AMG and Porsche rely on hyper-efficient engineering.

The Mercedes AMG One remains the undisputed king with a 6:29.09 lap time, proving that hybrid hypercar technology still holds the crown. However, the rumor of a new Porsche 911 GT2 RS suggests that the battle for the fastest combustion-focused street car is far from over.

The price of this performance is steep. While a Corvette ZR1X starts at $223,195, the Mustang GTD carries a $327,960 sticker price. The “Competition” version is expected to command an even higher premium, cementing these vehicles as investment-grade assets rather than mere transportation.

Frequently Asked Questions

What is the fastest street-legal American car at the Nürburgring?
The Ford Mustang GTD Competition is currently the fastest, with a lap time of 6:40.835.

Frequently Asked Questions
Competition Ford American

How does the Mustang GTD Competition compare to the Corvette ZR1X?
The Mustang GTD Competition is more than eight seconds faster than the ZR1X, which clocked a time of 6:49.275.

What upgrades make the GTD Competition faster than the standard GTD?
It features a more powerful version of the 5.2L V8, magnesium wheels, carbon bucket seats, lighter dampers, and enhanced aerodynamics including front dive planes and rear carbon-fiber aero discs.

Who drove the record-breaking Mustang?
The car was piloted by Ford Performance and Multimatic factory driver Dirk Müller.

Join the Conversation

Do you think the Corvette team will fight back with a new record, or has Ford finally claimed the throne of the ‘Ring?

Let us know in the comments below or subscribe to our newsletter for more high-performance updates!

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Business

Norway Bought Almost No Gas Cars Last Year

by Chief Editor
written by Chief Editor

Norway’s EV Revolution: A Glimpse into the Future of Driving

Norway is rapidly becoming a living laboratory for the electric vehicle transition. Recent data reveals an astonishing 95.9% of new cars sold in 2025 were electric, nearing the country’s ambitious goal of phasing out gasoline and diesel vehicles. This isn’t just about environmental policy; it’s a fundamental shift in how Norwegians view transportation, and it offers valuable lessons for the rest of the world.

The Incentive Shift: What Happens When Tax Breaks Change?

For years, Norway’s generous EV incentives – particularly the VAT exemption – fueled its electric surge. However, these incentives are evolving. In 2026, the VAT exemption will be limited to EVs priced under $30,000. This change is poised to reshape the market, potentially boosting demand for more affordable electric models and challenging the dominance of premium brands. It’s a crucial test: will Norwegians continue to embrace EVs even when the financial benefits aren’t as widespread?

This shift isn’t happening in a vacuum. The Norwegian government has simultaneously increased taxes on internal combustion engine (ICE) vehicles, making them significantly more expensive to purchase and operate. High registration fees and fuel taxes create a powerful economic incentive to go electric. It’s a two-pronged approach – rewarding EV adoption and penalizing fossil fuel dependence.

Tesla’s Reign and the Rise of Chinese Automakers

Despite the changing landscape, Tesla remains the market leader in Norway, holding a 19.1% market share for the fifth consecutive year. The Model Y continues to be a popular choice. However, the competitive landscape is intensifying. Chinese automakers are making significant inroads, increasing their collective market share to 13.7% in 2025, up from 10.4% the previous year. Brands like BYD and MG are offering compelling EVs at competitive price points, capitalizing on the upcoming incentive changes.

Did you know? Norway’s success isn’t solely about incentives. A robust charging infrastructure, coupled with a population generally receptive to new technologies, has played a vital role.

Beyond Norway: Lessons for Global EV Adoption

Norway’s experience provides a roadmap for other countries aiming to accelerate EV adoption. Key takeaways include:

  • Strong Policy Support: Consistent and long-term policies are crucial. Sudden changes can create uncertainty and hinder investment.
  • Financial Incentives: While not the only factor, financial incentives can significantly accelerate adoption, especially in the early stages.
  • Infrastructure Investment: A widespread and reliable charging network is essential to alleviate range anxiety and encourage EV ownership.
  • Taxation of ICE Vehicles: Increasing the cost of gasoline and diesel cars can create a powerful incentive to switch to electric.
  • Public Awareness Campaigns: Educating the public about the benefits of EVs can help overcome misconceptions and drive demand.

The European Context: A Slower Pace

While Norway is leading the charge, the rest of Europe is progressing at a slower pace. The European Union’s average EV adoption rate in 2025 is around 17%, significantly lower than Norway’s. Nordic countries like Denmark (over 50%) and Sweden (around 37%) are also demonstrating strong EV uptake. However, the EU’s initial plan to ban the sale of new combustion engine cars by 2035 faced pushback and has been modified, highlighting the challenges of a unified approach.

Pro Tip: Consider the total cost of ownership when evaluating an EV. While the upfront cost may be higher, lower fuel and maintenance costs can often offset the difference over the vehicle’s lifespan.

The Future of EV Sales in Norway: A Shift in Vehicle Types?

The 2026 incentive changes are expected to trigger a shift in the types of EVs purchased in Norway. With the VAT exemption limited to vehicles under $30,000, demand for smaller, more affordable models is likely to increase. This could benefit European manufacturers like Renault, with its keenly priced Renault 5 Electric, and Chinese brands offering competitive options. It will be fascinating to see if this leads to a decline in sales of larger, more expensive EVs, even with their continued appeal.

FAQ: Norway’s EV Transition

  • Why is Norway so far ahead in EV adoption? A combination of generous incentives, high taxes on ICE vehicles, a robust charging infrastructure, and a supportive public.
  • What impact will the 2026 incentive changes have? They are expected to boost demand for more affordable EVs and potentially shift the market towards smaller vehicle types.
  • Is Norway’s experience replicable in other countries? While challenges exist, the key lessons – strong policy support, infrastructure investment, and public awareness – are applicable globally.
  • What role are Chinese automakers playing? They are rapidly gaining market share in Norway, offering competitive EVs at attractive price points.

Explore More:

What are your thoughts on Norway’s EV revolution? Share your comments below and let us know what you think the future holds for electric vehicles!

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Business

Meet The Affordable EV Beating Tesla And BYD At Their Own Game

by Chief Editor
written by Chief Editor

Geely Xingyuan: A Sign of China’s EV Revolution and What It Means for Tesla & BYD

The automotive world is watching China, and for good reason. The Geely Xingyuan, a relatively new entrant, is rapidly becoming a dominant force in the world’s largest EV market, challenging established giants like BYD and Tesla. With over half a million units sold in just 14 months, the Xingyuan isn’t just a flash in the pan – it’s a potential harbinger of a shifting global automotive landscape.

The Rise of Affordable, Feature-Rich EVs

For years, Tesla held the crown for desirable EVs, but at a premium price point. BYD democratized electric mobility in China, but the Xingyuan is taking affordability to another level. Starting at around $9,700, it undercuts many competitors while offering a surprisingly comprehensive feature set. This isn’t about stripping down essentials; it’s about smart engineering and efficient manufacturing. The Xingyuan’s success highlights a growing trend: consumers want electric vehicles, but price remains a significant barrier for many.

This affordability isn’t achieved through compromise. The Xingyuan boasts a modern interior, a large infotainment system (14.1-inch), and a surprisingly spacious cabin – larger than a Volkswagen Golf, in fact. It’s a compelling package that resonates with Chinese consumers, and its appeal is likely to extend beyond national borders.

Geely’s SEA-E Platform: The Secret Sauce

Central to the Xingyuan’s success is Geely’s Sustainable Experience Architecture-Entry (SEA-E) platform. This dedicated EV platform allows for economies of scale and efficient development. Unlike some manufacturers retrofitting existing platforms for electric powertrains, SEA-E is designed from the ground up for EVs, resulting in optimized performance and cost-effectiveness.

The platform supports two battery options – 30 kWh and 40 kWh – providing ranges of up to 310 and 410 kilometers (192 and 254 miles) respectively, based on the CLTC standard. While real-world range will vary, these figures are sufficient for most urban commutes and daily driving needs. The use of CATL’s Lithium Iron Phosphate (LFP) batteries further contributes to cost savings and improved safety.

China’s Charging Infrastructure Advantage

The Xingyuan’s appeal is amplified by China’s incredibly robust charging infrastructure. With an estimated two chargers for every five cars, range anxiety is significantly reduced. This contrasts sharply with many other markets where charging infrastructure lags behind EV adoption. In fact, China is witnessing a shrinking network of gas stations, a clear indication of the accelerating shift towards electric mobility. Dialogue Earth reports thousands of gas stations are expected to close by the end of the decade.

Rear-Wheel Drive and Independent Suspension: A Step Above

Beyond price and range, the Xingyuan distinguishes itself with its engineering choices. The rear-wheel-drive configuration and independent rear suspension are uncommon in this price segment, offering a more refined and comfortable driving experience. Most affordable superminis rely on a simpler, less sophisticated torsion-beam rear suspension. This attention to detail elevates the Xingyuan above its competitors.

Implications for Tesla and BYD

The Xingyuan’s success is undoubtedly putting pressure on Tesla and BYD. Tesla, facing increasing competition and a potential slowdown in US sales, needs to innovate and potentially adjust its pricing strategy. BYD, while still the dominant EV player in China, is seeing its market share challenged. The Xingyuan demonstrates that affordability and features aren’t mutually exclusive, forcing all manufacturers to re-evaluate their offerings.

Did you know? Geely owns Volvo, Polestar, and Zeekr, giving it access to a wealth of technology and engineering expertise. This synergy is evident in the Xingyuan’s advanced features and overall quality.

Future Trends: What’s Next for the EV Market?

The Geely Xingyuan is a microcosm of broader trends shaping the EV market:

  • Increased Affordability: Expect more manufacturers to focus on producing EVs at lower price points, making electric mobility accessible to a wider audience.
  • Platform-Based Development: Dedicated EV platforms like Geely’s SEA-E will become increasingly common, driving down costs and improving efficiency.
  • Software-Defined Vehicles: The integration of advanced software and connectivity features will be crucial for differentiation.
  • Charging Infrastructure Expansion: Continued investment in charging infrastructure is essential to alleviate range anxiety and support EV adoption.
  • Regional Specialization: Manufacturers will increasingly tailor their offerings to specific regional markets, taking into account local preferences and infrastructure.

FAQ: Geely Xingyuan – Your Questions Answered

  • What is the price of the Geely Xingyuan? The Xingyuan starts at around $9,700 (68,800 yuan).
  • What is the range of the Geely Xingyuan? Ranges of up to 310 and 410 kilometers (192 and 254 miles) are available, depending on the battery pack.
  • Is the Geely Xingyuan available outside of China? Currently, it is only available in China, but expansion to other markets is possible.
  • What makes the Geely Xingyuan stand out? Its combination of affordability, features, and engineering (rear-wheel drive, independent suspension) sets it apart from competitors.

Pro Tip: Keep an eye on battery technology advancements. Solid-state batteries, for example, promise higher energy density and faster charging times, potentially revolutionizing the EV market.

The Geely Xingyuan is more than just a successful EV; it’s a symbol of China’s growing automotive prowess and a glimpse into the future of electric mobility. Its success will undoubtedly force other manufacturers to innovate and adapt, ultimately benefiting consumers worldwide.

What are your thoughts on the Geely Xingyuan? Share your opinions in the comments below!

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World

EVs Surge in Germany: Volkswagen Dominates Market (28.5% Share)

by Chief Editor
written by Chief Editor

Last Updated on: 11th June 2025, 04:21 pm

Germany’s EV Evolution: A Deep Dive into Shifting Market Dynamics

The German auto market is a critical bellwether for the global transition to electric vehicles. Recent data reveals fascinating shifts in consumer preferences, manufacturer strategies, and overall market share. Let’s dissect the latest trends and what they might signal for the future of EVs.

Plugin EV Momentum Gains Ground

May’s figures show a clear acceleration in the adoption of plugin EVs in Germany. With a 28.5% combined market share, plugin vehicles are outpacing gasoline-only cars. This growth is driven by both battery electric vehicles (BEVs) and plugin hybrid electric vehicles (PHEVs).

BEVs experienced a substantial 45% year-over-year increase, while PHEVs witnessed even more significant growth, climbing by 79%. This indicates a growing consumer acceptance of EVs, driven by factors like improved range, lower running costs, and government incentives.

Did you know? Germany’s push towards EVs aligns with its ambitious climate goals, aiming to reduce carbon emissions significantly in the coming years.

Volkswagen Group’s Dominance: A Strategic Shift?

A significant development is the remarkable surge in BEV sales from the Volkswagen Group. The group’s BEV volumes more than doubled year-over-year in May. This remarkable performance has been so influential that 82% of the total YoY BEV volume growth in Germany originated from the group.

Volkswagen Group’s aggressive push could stem from a variety of factors, including strategic realignment, improvements in supply chains, or changes in consumer demand. Further analysis is needed to determine the exact cause, but the impact is undeniable: Volkswagen is taking a commanding position in the EV market.

Pro Tip: Keep an eye on Volkswagen’s announcements, as any strategic shifts often predict future market movements.

The Rise of BEV Market Share

In May 2025, BEVs held an 18.0% market share, with PHEVs at 10.5%. These are significant increases compared to the previous year and are reflective of the broader trend towards electrification. For example, the Volkswagen ID.7 was the best-selling BEV for the fifth month in a row.

The year-to-date (YTD) cumulative plugin share is impressive at 27.4%, with BEVs accounting for 17.6%. In 2024, the YTD share was 18.3% (with 12.0% BEVs), and in 2023 it was 20.6% (with 15.0% BEV). These numbers highlight the acceleration of EV adoption, despite the headwinds of BEV incentive cuts in late 2023.

Best-Selling BEV Models: A Closer Look

The Volkswagen ID.7 continues to lead the pack as the best-selling BEV, with the ID.3 and Skoda Elroq following suit. The Skoda Elroq’s third-place finish is particularly notable, marking its first time in the top three. This demonstrates the influence of the Volkswagen Group in the German EV market.

The Volkswagen Group dominates the top 10, taking positions from fourth to eighth, and further spots in the top 20. This dominance highlights their commitment and success in the German EV sector. Models from other manufacturers, such as the Audi A6 e-tron and Hyundai Inster, are also gaining momentum.

External Link: For more detailed sales figures, check out the latest reports from the European Automobile Manufacturers Association (ACEA).

Small-and-Affordable BEVs

The rise of small and affordable EVs is another interesting trend. The Hyundai Inster leads this segment, followed by the Renault 5, Opel Frontera, and others. These models are becoming increasingly popular as the market expands. These cars’ success shows consumer demand for accessible, emission-free vehicles.

The Outlook

Germany’s economy is showing signs of recovery, with GDP growth reaching 0% in Q1 2025. Inflation remains relatively stable, and the European Central Bank (ECB) has reduced interest rates, which may stimulate new car financing. Manufacturing PMI has remained flat, signaling steady production.

As the market continues to evolve, several questions remain: Will this growth persist? What impact will new models have? And, most importantly, what will be the next phase of the EV transition in Germany?

Frequently Asked Questions (FAQ)

What is the market share of EVs in Germany?

In May 2025, combined EVs (BEVs and PHEVs) held a 28.5% market share.

Which BEV model is the best-selling in Germany?

The Volkswagen ID.7 has been the best-selling BEV in Germany for five consecutive months.

How is the Volkswagen Group performing in the EV market?

The Volkswagen Group has experienced significant growth, accounting for a substantial portion of the BEV volume growth in Germany.

What are the key trends influencing the German EV market?

Key trends include the growth of plugin EVs, Volkswagen Group’s increasing market share, the popularity of small-and-affordable BEVs, and the overall economic climate.

What is the future outlook for the German auto market?

The market shows continued growth in EV sales, potentially influenced by economic factors and new model launches.

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