Porsche agreed to lifts its stake in Rimac, a move that could pave the way for parent Volkswagen Group to sell its ultraluxury Bugatti brand to the Croatian electric supercar maker.
Porsche will invest 70 million euros ($84 million) to raise its stake in Rimac to 24 percent, from 15 percent, in a capital increase, the VW Group brand said in a statement Monday.
Porsche first bought a 10 percent stake in Rimac in 2018, raising it to 15 percent a year later.
"Our investments in the company Rimac have proved to be absolutely right," Porsche Chief Financial Officer Lutz Meschke said. "The company has developed very well technologically. We expand our cooperation step by step."
"Rimac is well on its way to becoming a Tier 1 supplier for Porsche and other manufacturers in the high-tech segment," he said.
Rimac, known for electric hypercars that boast as much as 2,000 horsepower, has been gradually expanding engineering operations and supplies high-tech parts for electric vehicles to automakers such as Aston Martin, Hyundai and Kia.
Bugatti, which builds high-priced models including the $5.8 million Divo, sold only about 80 vehicles last year. Its 1,500-horsepower cars are increasingly out of line with VW's electrification drive, costing the group billions.
Rimac, which is headquartered near Zagreb, was founded in 2009 and now employs almost 1,000 people.
"Because we have many automakers worldwide as customers it's important for Rimac as well as for Porsche that we remain a wholly independent company," founder Mate Rimac said in the statement.
"The partnership with Porsche helps the company to develop and grow, which is an advantage for all our customers."
Reuters contributed to this report