Volkswagen wants Porsche to explode in the stock market

Volkswagen, the world’s second-largest automotive group, last Tuesday formalized an IPO project for its subsidiary Porsche, maker of the famous 911 luxury sports model, worth between 60 and 80 billion euros, seeking funds to finance its transition to electric traction. , euro according to analysts. This Porsche IPO should enable the Volkswagen Group to “accelerate” the turn towards an electric and connected car, group head Herbert Diess said then on Friday. This “could help us accelerate the implementation of our strategy and provide more flexibility, in addition to a multi-year investment plan that already has €90 billion in electrification and software,” explained Mr. Diess. Indeed, the twelve-brand giant has been in a fierce race to electrify its offering for months now, and is also planning the costly opening of at least six battery factories in Europe.

The IPO will also give Porsche “more entrepreneurial freedom” to become “the #1 maker of electric sports cars,” Mr. Diess added. According to the group’s chief financial officer, this could happen in the fourth quarter of this year. Porsche is currently wholly owned by the Volkswagen Group. This, in turn, is controlled by Porsche SE, already listed on the stock exchange, through which the Porsche-Piech family holds an absolute majority of voting rights (53.3%). Volkswagen’s Supervisory Board approved preparations for an IPO on Thursday evening. Porsche SE has also decided to “support in principle” this listing in the listed markets, after which Volkswagen will continue to own most of Porsche.

Lotus Elise stopped on the way to Hong Kong airport. Like Porsche, the British sports car maker is considering an IPO. Danish Siddiqui/Reuters

lotus too

For its part, famed English sports car maker Lotus is also considering an IPO to fund its giant growth targets for its production and electricity investment. “We are considering” an IPO that will take place “within 12 to 24 months” at the earliest for an amount that has not yet been determined, but will be in the order of several billion dollars, James Andrew said last Monday. , director of communications at Lotus. According to him, the location of the operation has not been determined, but it could take place in New York, London or Hong Kong. Last week, the manufacturer organized an event in London as part of a tour designed, in part, to solicit the interest of potential investors.

Lotus announced last month that it achieved its best sales in ten years in 2021 with 1,710 vehicles sold. The group is aiming for a very rapid growth in production, focusing in particular on all-electric models made in China. Thus, by 2028, the company plans to sell 100,000 vehicles per year thanks to a new division based in Wuhan (central China), which, among other things, will produce electric SUVs. It is this company that will become the subject of an IPO. The Lotus Group launched this subsidiary last August to “accelerate innovation” in batteries, electric motors or even “intelligent driving” and built a plant in Wuhan that will be ready this year. It should reach a maximum annual production capacity of 150,000 vehicles.

On this occasion, the brand detailed its predictions for four new electric vehicles: the first SUV at the end of 2022, a four-door coupe introduced in 2023, another SUV in 2025 and a new sports car in 2026. These models will be added to the Evija, the brand’s first all-electric car, and its latest Emira petrol car launched this year. Last year, the manufacturer stopped production of its legendary Elise, Exige and Evora models. At the end of January, Lotus announced a partnership agreement with Britishvolt, a company that plans to build a mega-factory to produce battery cells for electric vehicles in the North East of England. And in early 2021, the company signed an agreement with Alpine, the sports division of French manufacturer Renault, to partner in the development of all-electric sports cars.

In addition, Volvo Cars, owned by Chinese manufacturer Geely, was listed on the Stockholm Stock Exchange last October. Volvo and Geely are also due to list their joint electric brand Polestar on the stock exchange in 2022.

Source: AFP.

Volkswagen, the world’s second-largest automotive group, last Tuesday formalized an IPO project for its subsidiary Porsche, maker of the famous 911 luxury sports model, worth between 60 and 80 billion euros, seeking funds to finance its transition to electric traction. , euro according to analysts. This Porsche IPO should allow…