Volkswagen's Plans After Porsche Hit the Stock Market
Porsche’s IPO went well for its parent company. What are VW’s next steps in the transition to EVs?
Porsche is still fresh off its
initial public offering
(IPO), but based on its first-day performance, it looks like Volkswagen (VW) made the right move by listing it on the Frankfurt Stock Exchange. The legendary sports
car brand
ended the day with a value of $73 billion and walked away with 9.6 billion euros in funding, making it the largest IPO in Europe in the last 10 years.Now, VW is talking about doing the same thing with other subbrands in its family.
Jerry
, your car insurance super app, took a closer look a the details to get you up to speed.Next IPO under the Volkswagen umbrella: PowerCo
The first names under the VW umbrella that spring to mind are car brands like Audi, Lamborghini, and, yes, Porsche. But when it comes to the stock market,
Electrek
says the German auto giant has its sights set on another piece of business—its battery maker, PowerCo.CFO Arno Antiliz says the company will first rely on the money made from Porsche listing but that an IPO for PowerCo, the automaker’s newest subsidiary, hasn’t been ruled out.
The parent company has high hopes for its battery business. VW expects PowerCo to produce as much as 20 billion euros in annual revenue and help it
overtake
its current top rival, Tesla. No batteries have been produced by the subbrand yet, but VW plans to build six Gigafactories by 2030. It broke ground for the first one in Salzgitter, Germany this past July and expects to start building batteries there in 2025.
PowerCo is one piece of Volkswagen’s electrification strategy
Batteries will play an integral part in VW’s EV future. But the company has more to do than build battery packs if it wants to meet its targets.
The auto giant said in May that it hopes to shift half its car sales to electric power by 2030. In the same year, internal combustion engines will be completely phased out of the VW lineup in the U.S. But the company still has a long way to go.
Its EV production goal for 2022 was 800,000, nearly double what it managed to sell the year before but still a small fraction of its end-of-decade objective. And with only three EVs in the 11 new models
on the docket
for the next two years, VW still has a lot of development to do.Owning a VW-made EV
Tesla might still be outselling its competitors in the U.S., but if it’s variety you’re after, no one can beat Volkswagen and its subbrands for electric vehicles.
In the luxury department, Porsche and Audi are well on their way to becoming formidable EV brands. Porsche started with the Taycan and Taycan Cross and has the Macan EV set for 2024 while Audi will continue its e-tron badge with five separate models by 2024.
VW introduced the ID family for the 2021 model year with the ID.4, and three other models are expected to join it by 2024, including the much-anticipated ID.Buzz
microbus
.Coverage for a VW EV
The prices for these electric vehicles and the car insurance you’ll need for them will vary, but you can save money on coverage by shopping with Jerry.
Jerry is your ultra-talented car insurance broker for life. No need to sit across from him at a desk: Jerry is an app! It takes less than a minute to sign up, and you’ll be presented with competitive rates from dozens of top providers. Don’t lose coverage—find savings with Jerry.
Compare Car Insurance Quotes For Free
Jerry automatically shops for your insurance before every renewal. Members save $872/year.
Start saving money!
You might also be interested
