Volkswagen is well-positioned to finance its electrification strategy. It earned approximately 9.6 billion euros ($9.30 billion) from Porsche’s initial public offering and because a potential listing of its battery subsidiary is in the works, according to company’s finance boss.
Even as energy prices, logistics bottlenecks, and inflation drive up its costs, the automaker is staying true to its forecast of achieving the higher end of a 7-8.5% operational profit margin this year, Arno Antlitz told Reuters.
A special dividend of 49% of the approximately 19.5 billion euros Volkswagen received from the Porsche listing will be distributed to shareholders at the end of the year.
The automaker has defended the offering, which took place in the midst of erratic European stock markets, in part as a way to obtain money for its 52 billion euro electrification plans.
The chief financial officer stated, “We are well positioned financially and have solid cash flows to fund our electromobility strategy ourselves”.
The industry’s primary supply chain issue which has existed since the beginning of the coronavirus pandemic is still present and is probably going to persist through 2024.
In order to prepare for a potential listing of its PowerCo batteries business, the automaker is thinking about forging alliances over the next one to two years, he said.
According to Antlitz, “We do not rule out an IPO of the battery unit, but the financial flexibility we achieved today allows us to further expand our work in batteries alone. Then we will explore adding strategic partners later”.
Antlitz dismissed speculation that Audi, another premium brand and significant revenue generator for Volkswagen, may follow Thursday’s Porsche listing.
The PowerCo unit of Volkswagen is in charge of overseeing battery production and research, from mining to recycling, as well as projects like energy storage systems. Volkswagen has set aside 20 billion euros ($20.38 billion) for investment in its battery cell business.
In May of last year, former CEO Herbert Diess suggested a listing as a way to finance the automaker’s plans for battery expansion.
