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On Sunday by Florian Hilscher, Euro
The previous VW bosses themselves were shocked, the market alarmed by the news: Herbert Diess will no longer own Germany’s largest car manufacturer from September 1st. There is talk of an “amicable” separation. However, the change was reportedly initiated by the Porsche and Pitch owner families. The departure of the boss caused uncertainty among investors who lost VW shares.
This was considered the key driver that restructured the Wolfsburg company’s product portfolio and significantly improved the focus on electromobility. He sometimes encountered confrontations and also failed to solve problems in the Cariad software department. According to US investment bank Jefferies, Volkswagen is lagging behind in sales and software implementation, and the strategy remains capital-intensive. New impetus is needed now.
Oliver Bloom, currently head of Porsche, the sports car subsidiary of VW, will take over the management of the group. In the future, he will manage the parent company and the subsidiary in one person. The start was poor, alleged close contacts with Finance Minister Christian Lindner caused negative headlines. The exchange should be about the sustainable use of e-fuel, synthetic fuel. Both sides denied any agreement or influence between the FDP and the Porsche boss.
Nevertheless, the designated VW boss faces major challenges. With VW struggling in the US market, the all-new version of the Scout for SUVs is set to gain momentum. On the other side of the world, stocks in China have recently declined. This is probably due to the lack of chips and too few digital functions that customers in the Middle Kingdom appreciate. With up-and-coming competitors like BYD or Nio, they get local options. Powerco also has construction sites. The division, which bundles the group’s global battery activities, is struggling with procurement problems: “The supply chain for our business does not yet exist,” CFO Kai Alexander Müller recently admitted. Volkswagen is ready to list Powerco.
Question about dual roles
In addition, Bloom has to take care of his move on the trading floor. His current area of responsibility, Porsche AG, is aiming for an IPO in the fourth quarter. Analysts have criticized Bloom’s dual role as head of Volkswagen and Porsche. Bernstein’s Daniel Rosca says the official reasons behind Porsche’s IPO are the sports car maker’s independence, VW’s money for its electric strategy and a desire to better highlight Porsche’s value. A decision to appoint Bloom to head VW and Porsche would contradict all three justifications.
Probability: Changes at the top bring uncertainty, while valuations and outlook make VW look promising.
Notice of Conflict of Interest:
The majority owner of the sole shareholder of Finanzen Verlag GmbH, Mr. Bernd Fortsch, the managing editor-in-chief, Mr. Frank Pöpsel, and the deputy editor-in-chief, Mr. Stephan Bauer, held direct and indirect positions. on the following financial instruments mentioned in the publication or related derivatives, which may benefit from any price developments as a result of the publication: Volkswagen.
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