Volkswagen is current in a great position to finance its electrification strategy, according to its finance chief, after reaping around 9.6 billion euros ($9.30 billion) from Porsche’s IPO and considering listing its battery unit.
Arno Antlitz, a Reuters reporter, said the carmaker was sticking to its forecast of a 7-8.5 per cent operating profit margin this year, despite rising energy prices, logistics bottlenecks, and inflation.
It would continue to raise prices on customers while attempting to reduce fixed costs in-house.
“The aim is to reduce costs and still offer affordable cars for Volkswagen,” Antlitz said, speaking outside the Frankfurt stock exchange following the listing of Volkswagen’s sportscar brand Porsche. read more
Volkswagen raised approximately 19.5 billion euros from the Porsche listing, with 49% going to shareholders as a special dividend at the end of the year.
The carmaker justified the listing, which took place against the backdrop of volatile European markets, in part as a way to raise funds for its 52 billion euro electrification plans.
“We are well set-up financially have strong cash flows to fund our electromobility strategy ourselves,” the chief financial officer said.
The shortage of chips, which has plagued the industry since the start of the coronavirus pandemic, remained the industry’s main supply chain issue and will most likely continue into 2024.
He said the carmaker was considering forming partnerships in the next 1-2 years as a step toward listing its PowerCo batteries operation.
“We do not rule out an IPO of the battery unit, but the financial flexibility we won today allows us to further strengthen our work in batteries alone. Then we will consider adding strategic partners later on,” Antlitz told Reuters.
Antlitz dismissed rumors that Thursday’s Porsche listing could pave the way for the listing of Audi, another premium brand and significant revenue generator for Volkswagen.
“The next project is strategic partnerships or a potential IPO of the battery unit – I can’t say more for now,” he said.
Volkswagen has set aside 20 billion euros ($20.38 billion) for investment in its battery cell business, with the PowerCo unit in charge of everything from mining to recycling, as well as projects such as energy storage systems.
Former CEO Herbert Diess proposed a listing in May of last year as a way to fund the carmaker’s battery expansion plans.
(Adapted from Reuters.com)
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