VW will sell 911 million shares of Porsche, a number chosen because it mimics the name of the brand’s flagship model – and the only car in its lineup that it has vowed to go non-electric.
The company has announced that it will use almost half of the proceeds to pay a one-time special dividend; the rest will be used to fund the transition to battery technology.
The listing of Porsche shares is intended to help VW raise money to invest in electric vehicles and its foray into software development as it tries to catch up with Tesla.
Former CEO Herbert Diess, who was dismissed this year, had set himself the goal of the German group overtaking Tesla in the sale of electric cars by 2025.
Daniela Cavallo, chair of VW’s powerful works council, told the Financial Times last week that the carmaker may sell more shares in the future to raise additional funds if needed.
VW advisers say the group could also look to list other parts of the company in the future, including the battery business, the Ducati bike name, and possibly Lamborghini or Bugatti Rimac in the longer term.
With the floating Porsche, VW bet the brand could be financially valued higher than most car brands, giving it the “luxury” status enjoyed by Ferrari.
Advisors have classified the company as operating in Ferrari’s segment while offering the support of an auto giant to help it leverage the economies of scale of a major automaker.
Potential investors have raised concerns about the company’s ties to VW, including the control the group has over Porsche and its potential dependence on the parent company for software and other technologies.
financial times
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