A fresh report out of Europe claims the Volkswagen Group is set to off-load subsidiary Bugatti to Rimac Automobili, a Croatian automaker that focuses on electric vehicles.

According to CAR magazine UK, Bugatti will “likely be transferred to Rimac via Porsche, in exchange for a bigger share in Europe's answer to Tesla”. Porsche already owns a 10 percent stake in Rimac. This, the report, says would be set up as a “straightforward barter deal”.

The report claims VW Group executives have already approved the deal though adds it “has yet to be signed off” by Wolfsburg’s supervisory board. Bugatti CEO Stephan Winkelmann is unlikely to remain in the role, according to CAR magazine UK.

The publication says the Volkswagen Group will instead invest in electrification and autonomous driving of its core brands.

Interestingly, the report furthermore suggests the VW Group is still toying with the idea of selling off subsidiaries such as Lamborghini, Seat, Ital Design, Bentley and Ducati.