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autoSeptember 7, 2022

Volkswagen says planned Porsche float will secure jobs for future

Volkswagen’s plans to float its luxury Porsche subsidiary as an independent company should ensure jobs in Germany in the near feature, company officials said on Tuesday as they tried to build support for the plan.Officials with the German carmaker said that future income would be directed towards e-mobility and digitalization projects and this would help to guarantee the future of existing corporate sites.“That way we can be sure that a Porsche market entry will serve our goals of continued occupational security,” they said.Porsche chief executive Oliver Blume described the announced initial public offering (IPO) of the sports car manufacturer as an “historic moment for Porsche.” The planned IPO would be an important milestone for Porsche’s greater independence, Blume said in Wolfsburg on Tuesday. The IPO was designed to release Porsche’s full potential, he added.Blume, who since September has also been head of the Wolfsburg-based Volkswagen Group, wants to work on this in this role and ensure that synergies in both directions remain.Should conflicts of interest nevertheless arise, he said, a strict separation would be made, and the Porsche board would always be in a position to make independent decisions.With regard to the valuation of the preference shares at the planned start of trading and of the company, Blume said that they were currently on the home straight and could not go into further detail as there were still many talks with investors pending.In the coming weeks, he said, a clear value for the company would be defined.Late on Monday, VW and Porsche’s parent company, Porsche SE, agreed on the plan to allow part of the shares in the operative business of Porsche to be traded freely on the Frankfurt Stock Exchange.One-quarter of the preference shares from the restructured share capital are eligible for this. The listing is targeted for the end of September or the beginning of October.The goal is to complete the sale by year’s end. However, many of the details will be decided by the way the market works.The plan has won initial positive reviews from the carmakers’ works council, which noted the special dividends as well as a planned $1,984 bonus for employees.