Volkswagen Group CEO Herbert Diess says he sees no immediate need for action when questioned about a potential initial public offering of Porsche stock.
Speaking at VW’s annual media conference in Wolfsburg, Germany, Diess says Porsche’s high profitability and resulting cash flow will be crucial to the funding of the Group’s newly announced Accelerate program that aims to transition it from traditional combustion-engine models to leadership in global electric vehicle sales by 2025.
“Porsche is a jewel in the crown for us. Due to its strong earnings, it is increasing in value. The reason it achieves these big margins is because it draws heavily on the group, partly with Audi and partly with Volkswagen, so the networking is very tight,” says Diess.
The 62-year-old Austrian tells journalists Volkswagen’s goal is to fund its transition to EVs via cash flow from existing businesses, including those from Porsche.
“You need to think very, very hard about every single step,” Diess says. “So, we do not see any immediate need for action.”
A report by Germany’s Manager Magazin last month suggested Volkswagen was preparing Porsche for an IPO partly to fund development of new electric vehicle platforms, battery technology and software.
