Skip to main content

VW’s Spun off Boutique Brands Could Bring a Bundle on Stock Market

Volkswagen Group has been looking at spinning off its ultra-lux brands. And Porsche’s CFO said that the new group could be worth serious cash.

“We would likely be viewed as a luxury goods manufacturer and the multiples are completely different compared with a normal premium brand,” Lutz Meschke told reporters at Porsche’s development center, Automotive News reports. “A valuation of 60 billion to 70 billion euros certainly doesn’t sound like a stretch.” He added that as much as 100 billion euros was conceivable.

That new group would put Porsche into a new branch of the company along with Bentley, Bugatti, and Lamborghini. Meschke said that applying the same stock market metrics to those companies as are applied to Ferrari, then the Super Premium Brand Group could be worth more than three times that automaker. If it had a stock offering, the group would be the third automaker to do so recently, after Chinese electric car maker Nio and Aston Martin.

Volkswagen Group’s current valuation is about 69 billion euros which means that the children would be worth more than the parent.

Separating the groups could allow VW to focus more on its own core car brands. It would also mean that the automaker couldn’t conceal losses there with profits from the boutique brands.

[source: Automotive News]

The post VW’s Spun off Boutique Brands Could Bring a Bundle on Stock Market appeared first on VWVortex.



from VWVortex https://ift.tt/2AbtK6l
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Review: Saying Goodbye to the CC V6

For all its size and its global reach, Volkswagen is still, in many ways, a deeply human company. There was, for instance, the Bugatti Veyron an ego project if ever there was one. Then the purchase of Ducati, a move most called folly. And then there was the Phaeton, the Volkswagen that most folks can’t afford. Not only were these moves all strange, I’m sure that they made VW’s accountants furious. None of them made good business sense, but they were all deeply interesting and they all are evidence of the heart that beats at the center of VW. Among these follies is the CC, a car that everyone agrees is rakishly handsome, but that no one really wanted to buy. The car couldn’t last, but the world is brighter for its having been in it. With the approach debut of the Arteon, it seems like a good time to look back on its sadly departing predecessor. The version I drove, because I live in Canada, is a V6 Wolfsburg Edition, which apparently isn’t available in the States. Nor is the V6, not as...
Post a Comment
Read more

Mitsubishi admits it lied about MPG ratings for all vehicles in Japan

Filed under: Government/Legal , Green , Mitsubishi , Fuel Efficiency , Japan Mitsubishi says its shady fuel-economy test practices may have been used on all vehicles it sells and has sold in Japan. Continue reading Mitsubishi admits it lied about MPG ratings for all vehicles in Japan Mitsubishi admits it lied about MPG ratings for all vehicles in Japan originally appeared on Autoblog on Wed, 11 May 2016 12:36:00 EDT. Please see our terms for use of feeds . Permalink  |  Email this  |  Comments from Autoblog Volkswagen http://ift.tt/21X3bHv
Post a Comment
Read more

More 3.0-Liter TDI Settlement Details Expected by January 31

Volkswagen and the TDI Plaintiff’s Steering Committee were in court today for another status conference following the agreement in principal reached earlier this week. Little new information was given at the conference held before Judge Charles Breyer today, but the court ordered the parties to develop a formal settlement agreement, class action notices, and a class notice plan by January 31, 2017. For now, though, owners still don’t know how much to expect in compensation. Elizabeth Cabraser, lead Counsel for the Plaintiff’s Steering Committee reaffirmed in a statement today that the compensation would be “substantial.” The potential cost to Volkswagen is widely reported to exceed $1 billion, though, with an additional $225 million going into an environmental trust to help offset excess emissions. Buy back offers are still only expected for the oldest 20,000 of the roughly 80,000 VW Group vehicles sold in America with the 3.0-liter TDI engine. Those vehicles are mostly SUVs, like ...
Post a Comment
Read more