Volkswagen AG on Monday announced plans to introduce a new electric sport utility vehicle (SUV) under the Porsche brand and bolster profits in the coming years as the luxury carmaker tries to win over investors ahead of its initial public offering.
Porsche said its automotive EBITDA margin rose as much as 27% this year-on-year, up from 24.5% last year, the company said Monday during its capital markets day.
“Although we are clearly positioned in the luxury automotive segment, we benefit from significant economies of scale,” Volkswagen CEO Oliver Blume said in a statement.
The luxury car brand will publish more detail in the coming weeks on what its agreement with Volkswagen for the structure of a partial listing will look like, Blume said while speaking at Porsche AG’s Capital Markets Day.
“We are in progress to work on an industrial cooperation agreement with Volkswagen Group. In the upcoming weeks, we can go into more details,” Blume said.
“It will be very important to have a clear contract how independence will be organized. It is important to get more speed and on the other side still using scale effects with Volkswagen Group.”
Volkswagen, Porsche’s top shareholder, drew up a preliminary agreement in February to list the luxury car brand, hoping to unlock value in what could be one of the world’s largest stock market debuts.
The German automobile giant has planned to list Porsche in the fourth quarter of 2022, and the company has hired more than a dozen banks to push the IPO, which could value Porsche at as much as 80 billion euros ($81.4 billion) to 90 billion euros, Bloomberg reported, citing people familiar with the matter.
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