Porsche AG said it will generate about €1 billion ($1.16 billion) from the sale of its stake in the venture that owns the Bugatti supercar brand. Porsche, majority-owned by Volkswagen AG, will use €250 million of the proceeds to further fund its pension obligations, it said in a statement. The company didn’t disclose the price when it announced the sale to a consortium led by HOF Capital in April.

The transaction marks a significant move for Porsche as it streamlines its portfolio and focuses on core operations. The Bugatti brand, known for its high-performance luxury vehicles, was previously co-owned with other partners. The sale to HOF Capital’s consortium had been anticipated since the spring.

Porsche’s decision to allocate a quarter of the proceeds to pension funding underscores its commitment to financial stability and employee benefits. The remaining funds are expected to support future investments and strategic initiatives.

The completion of the sale comes amid broader shifts in the automotive industry, with companies increasingly focusing on electrification and digital transformation. Porsche’s move reflects a trend of automakers divesting non-core assets to raise capital for these priorities.