The Porsche maker is raising its expectations ahead of its IPO

The Porsche maker is raising its expectations ahead of its IPO

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Published on 07/18/2022 at 16:27 – Updated on 07/18/2022 at 16:19

Luxury carmaker Porsche raised its long-term profit targets on Monday before its sole shareholder, the Volkswagen group, decided to soon float its nugget on the stock market.

The famous 911 manufacturer has a long-term expectation of profitability (operating, based on EBIT) on sales of more than 20%»said Monday his boss Oliver Blume at the Porsche Investor Day.

For 2022, Porsche has already increased its operating margin target which must now reach between 17 and 18%, against more than 15%» previously mentioned. Sales are expected between 38 and 39 billion euros, representing a growth of 11 to 14% compared to 2021, when the group sold 302,000 Macans and other Cayennes worldwide, a record.

Good thing before the IPO of Porsche AG and Volkswagen, the world’s second-largest auto group, which plans to float a minority stake in its subsidiary in the fourth quarter. This plan must be decided and submitted during the summer.

Porsche is worth between 80 and 90 billion euros, according to sources cited by Bloomberg.

By giving up part of its control over Porsche, Volkswagen could get the billions needed to finance its investment in the electric, connected and self-driving car.

The Wolfsburg Group wants to use this headwind to raise itself to the level of American Tesla and its Chinese competitors, which are the highest in these areas.

Porsche AG, owned by Volkswagen since 2009, should not be confused with the listed company Porsche Automobil Holding (Porsche SE» for short), also in Stuttgart and a major shareholder of Volkswagen since 2009.

The German region of Lower Saxony is also a direct shareholder of Volkswagen, up to 20%, thus being able to exert its influence there.

This construction prevents so far the Porsche-Piëch family, the majority shareholder of the Porsche holding company, from having a significant influence on the Volkswagen group and therefore on the Porsche nugget.

With Porsche AG listed on the stock market, the Porsche-Piëch clan could gradually increase its control over the family business founded by engineer Ferry Porsche after World War II.

The race car manufacturer has also set its sights on electric cars and plans to eventually launch a a new all-electric SUV model»Mr. Blume said.

To meet global demand for electric luxury cars, 80% of the brand’s vehicles will be fully electric by 2030.

Le Revenu, with AFP