Cars Volkswagen is considering listing Porsche on the stock exchange, shares rose as much as 10 percent after the news

Volkswagen hopes to raise more capital from the stock exchange to develop Porsche’s electric cars. Tesla, which is building an electric car plant in Berlin, is putting additional pressure on electrification.

Car company Volkswagen is negotiating with a bubble wrap designer Ferdinand Porschen with the heirs as to whether the iconic Porsche car company could be listed on the stock exchange, the US newspaper The Wall Street Journal.

Porsche has been on the stock market before, but in 2009 Volkswagen swallowed the company. The merger of the companies was preceded by a fierce battle over which carmaker eats the other. Eventually, the indebted Porsche ended up in Volkswagen’s ownership.

Porsche Automobil Holding is Volkswagen’s largest shareholder. According to Volkswagen, a preliminary listing agreement has already been drawn up. It still requires the approval of both companies and their management teams.

Volkswagen shares rose as much as 10 percent after the news was released, while the rest of the market saw a decline, mainly after Russia invaded Ukraine on Monday.

See also  Motorsport William Alatalo took a step that has failed for most due to lack of money

Porschen the listing would provide Volkswagen with new capital for the development of electric cars and new technology. The pressure to promote electrification is strong as Tesla is setting up an electric car plant in Germany.

Read more: Volkswagen had to challenge Tesla’s supremacy in Europe, the traditional car giant has completely fallen behind Tesla’s feet

Volkswagen is not the only car company to seek more capital from the market in the turnaround of the automotive industry. The company, previously known as Daimler, split in two last year.

The company renamed itself Mercedes-Benz and decided to focus on passenger car manufacturing. The goal is to get investors excited about the company’s investment in luxury cars. The truck side was split into its own company, Daimler Truck, which was listed on the Frankfurt Stock Exchange.

Volvo, which is majority-owned by the Chinese, also returned to the Stockholm Stock Exchange last year. The price of Volvo shares has risen by 21 percent since the listing.

See also  Volleyball Russian media: Tuomas Sammelvuo will not continue as Russia's head coach

Analysts according to Porsche could be well placed to succeed on the stock market, The Wall Street Journal says. It’s a well-known brand that brings money to Volkswagen’s box office.

In the first three quarters of last year, Porsche made an operating profit of € 3.4 billion, which was about 34 percent of the result for Volkswagen’s entire auto segment. Last year, Porsche sold a record 301,915 cars. In total, Volkswagen sold 8.9 million vehicles.

However, there is still a twist in Porsche’s listing. Volkswagen’s management team includes, among others, representatives of the Metalworkers’ Union, representatives of the Land of Lower Saxony and Porsche’s heirs. Members ’interests are often conflicting, and the management team has not yet reached an agreement on whether or not the listing will take place.

#Cars #Volkswagen #listing #Porsche #stock #exchange #shares #rose #percent #news

Related Posts

Next Post

Leave a Reply

Your email address will not be published.