VW Looking At Next Listing After Porsche IPO Success

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Volkswagen wants to rake in as much cash as possible.

After months of consultation and arduous planning, the Volkswagen Group successfully listed Porsche on September 29, with the sports car maker trading on the Frankfurt Stock Exchange. With global markets in somewhat of a downward spiral, no one expected Porsche to perform the way it did. Shares climbed by up to 3% within hours of trading.

As a result, Volkswagen raked in around $9.3 billion from the Initial Public Offering (IPO), most of which will be funneled into electrification investments. Now, according to Reuters, the German giant is toying with the idea of floating its battery unit on the stock market.

Front Angle View Volkswagen

Volkswagen's Arno Antlitz told the publication that a PowerCo listing may happen in the coming years, with the automaker thinking about forging new partnerships in the coming years.

"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," he said.

Various rumors have suggested that Audi may be the next VW Group premium brand to hit the stock market, but Antlitz dismissed this as hearsay. "The next project is strategic partnerships or a potential IPO of the battery unit - I can't say more for now."

2024 Volkswagen ID.Aero Rear Angle View Volkswagen

As per the report, VW has set about $20.3 billion aside to invest in battery cells, with PowerCo taking charge of research, mining, and battery production. The German automaker has big goals for the near future, which include unseating Tesla from the EV throne.

According to Antlitz, Volkswagen is hoping to reach the higher end of its 7-8.5% operating profit margin output, despite the various supply challenges facing the Wolfsburg-based company. "The aim is to reduce costs and still offer affordable cars for Volkswagen," he added.

European inflation rates, however, may stand in the way of that.

2021-2023 Volkswagen ID.4 Front View Driving Volkswagen

It's a different story here in the USA, where Volkswagen has introduced an even more affordable ID.4 variant. The locally-built EV is now available for $37,495, making it one of the more attainable electric crossovers on the market. With incentives, the price just scrapes beneath the $30,000 mark.

It will soon be joined by the ID. Buzz and ID. Aero sedan, both of which are important global vehicles for the company. If Volkswagen wants to succeed in America, these battery-powered newcomers need to sell well. The brand already does plenty of business in the world's biggest automotive market, China, where it sold 92,700 EVs in 2021.

Source Credits: Reuters

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2021-2023 Volkswagen ID.4 Front View Driving Front Angle View 2024 Volkswagen ID.Aero Rear Angle View

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