The initial public offering of Porsche, and the future possibility of listing its battery unit, have put Volkswagen in a great position to fund its future electrification strategy, according to VW CFO Arno Antlitz.
Antlitz spoke outside the Frankfurt Stock Exchange following the listing of the company’s sportscar brand, which earned the company around 9.6 billion euros, or $9.30 billion. The company raised approximately 19.5 billion euros in proceeds from the listing. 49% of that will go to shareholders at the end of the year.
According to Antlitz, the company is maintaining its forecast to reach 7-8.5% operating profit this year. Antlitz said the company would pass on higher prices to consumers while simultaneously looking for ways to reduce fixed costs in-house.
“The aim is to reduce costs and still offer affordable cars for Volkswagen,” Antlitz said.
In part, VW justified the Porsche listing as a way to raise funds to support its 52-billion-euro electrification plans. “We are well set up financially and have strong cash flows to fund our electromobility strategy ourselves,” Antlitz said.
The CFO also hinted at the possibility of VW forming partnerships over the next two years as a first 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. “The next project is strategic partnerships or a potential IPO of the battery unit – I can’t say more for now,” he said.
The German automaker has marked 20 billion euros for investment in its battery cell business.
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