Porsche is pulling a U-turn on one of its more recent high-profile investments.

The German sports car maker announced that it has reached an agreement to sell its stake in Bugatti Rimac to an international consortium. The move is believed to be part of an effort by the marque to cut costs during a time of financial uncertainty.

Porsche announced early Friday that it had reached an agreement with a group led by New York-based venture capital firm HOF Capital, with the biggest investor being BlueFive Capital. The automaker has owned a 45 percent stake in Bugatti Rimac since it was formed in 2021.

As a part of the deal, Porsche will also divest its 20.6 percent stake in the Rimac Group. This means that the sale brings to an end to Volkswagen Group’s nearly three decades of influence over Bugatti. The auto conglomerate, which owns a three-fourths stake in Porsche, acquired the French hypercar maker in 1998 and has played a crucial role in establishing and guiding its modern identity.

It’s important to note that the deal is just a transaction agreement at this point, and that some regulatory hurdles still need to be cleared before it can be finalized. Porsche said that it and the consortium have agreed to keep the terms of the sale confidential, though they are likely to eventually see the light of day via the automaker’s public financial disclosures.

“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 give a reason for why it had agreed to sell its stake in Bugatti Rimac now—the latter reportedly explored buying out the former last year—but did note that the move will allow it to focus on its core business going forward. The marque is said to be under financial pressure due to U.S. tariffs and falling demand for its vehicles in China, according to CNBC. Despite the perceived long-term benefits of the deal for Porsche, the price of its stock dropped 1.6 percent in early trading following the announcement.