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VW pumps brakes with Porsche’s release, reducing eye work

In February, there was talk of the Volkswagen Group seriously considering a Porsche brand spin-off or at least a listing on the stock exchange. Rumors go further technically, but outlets claim that VW felt oversized by the brand and wanted to shake off some money while streamlining the organization. I started quoting until early 2021.

That’s not the case, says Volkswagen CEO Herbert Diess. The IPO didn’t seem out of the question, given how ridiculously it works against other entities backed by hype (whether enabled or not), but manufacturers are consistent. Offloading what has become one of the most profitable brands has always seemed suspicious. Dís shows that neither scenario seems plausible anymore, and VW is currently less interested in giving up any amount of control.

The CEO called the reporters to discuss the Volkswagen Group’s third-quarter earnings. “Currently, we do not sell other assets.”

Bloomberg Dís even referred to rampant speculation about Porsche in the media, doubling his claim that VW wanted to maintain a premium nameplate, but reported that it was not a reality. This probably includes Audi, Bentley, Bugatti and Lamborghini. However, the economic situation is so fluid that Porsche continues to be very valuable at VW’s estimated market capitalization of billions of shy, so there is no way to know what the future holds.

from Bloomberg:

VW’s key stakeholders will meet next month to invest in a five-year German industry giant, including unprecedented costs for new technologies such as electric and self-driving cars and aggressive expansion of software operations. Consider the plan.

Arno Antlitz, VW’s chief financial officer, said he was “quite confident” that the investment could come from the group’s own cash flow as long as the company met its cost-cutting goals.

VW is exploring options for the list of Porsche, Bloomberg and other media reported in February. Bloomberg Intelligence estimates that 911 sports car makers are worth € 99 billion ($ 115 billion). This is compared to VW’s current market capitalization of € 122 billion.

But it’s not all the sunlight and roses in Germany. Despite VW reporting that it earned € 2.8 billion (US $ 3.25 billion) in the previous quarter, the current plan includes headcount reductions. Like many automakers, Volkswagen has cut production in 2021 because its supply chain is completely disrupted and capital needs to be released to improve the transition to EVs. bottom. After all, you can make a profit by building fewer cars by raising prices and reducing overheads as much as possible. However, VW’s operating profit is technically down 12% compared to last year, so it doesn’t look like VW’s long-term solution.

[Image: Volkswagen Group]

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VW pumps brakes with Porsche's release, reducing eye work

Source link VW pumps brakes with Porsche's release, reducing eye work

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