Volkswagen CFO Arno Antlitz said that the auto group is in an excellent financial position to fund electrification.
According to Reuters, the Volkswagen CFO clarified that he believes the auto group is financially ready for electrification. From the auto group’s Porsche IPO today and Volkswagen’s relatively high operating profit margin, continued investment into electrifying their offerings will be possible. But the CFO has plans to get more liquidity to fund electrification.
From the CFO’s comments to Reuters, Volkswagen has acquired roughly €9.6 billion from their Porsche IPO today, while the brand’s operating profit margin of 7-8.5% will aid in funding electrification. But Volkswagen is now considering offering an IPO for its battery division to continue raising funds. The CFO did not clarify a timeline for such an IPO.
While the Porsche IPO was a success story for Volkswagen’s financials, the CFO stated that other than the battery division, no other IPOs were expected, such as from other VW luxury brand Audi.
Many who are invested in the Auto industry have been worried that ongoing supply chain issues would mean that many legacy brands would have trouble securing desperately needed capital for electrification. Still, Volkswagen has shown that they are resilient despite these challenges.
The next big concern for Volkswagen Group might not be securing capital today but selling EVs into the future. Volkswagen’s electric vehicle offerings across its numerous brands are relatively sparse, especially in the US, where the company hasn’t exactly found success in selling its Volkswagen ID.4.
Perhaps this situation will change as the auto group moves forward with its electrification plans. Despite losing its EV-focused CEO, Herbert Diess, the brand continues its electrification plans and growing EV sales in many markets. This is “make or break” territory for the legacy brand.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!