The German newspaper Bild published a report about the Porsche family, which owns the Porsche car company, stating that the family is considering selling its shares in the German auto giant Volkswagen. According to the same report, the Porsche family is considering changing its activities and focusing on areas other than the automotive industry.
The Porsche/Piech family holds a majority of the votes at the Volkswagen Group headquarters, with Porsche SE Holding owning more than 50% of the shares of the German giant, located in Wolfsburg. However, these same members of the holding company have sparked a crisis in recent months when they made it clear that they want to diversify their activities.
Reports indicate that Porsche Holding, which was established in 2007 to separate its investment activities from the automotive sector, is considering selling shares in Volkswagen to reinvest in other sectors. This news or rumor comes ahead of the German group’s earnings release, which are expected to decline in 2024, like many German industrial companies, due to the war in Ukraine and intense competition from Chinese companies.
Porsche executives considering selling a portion of their stake in Volkswagen is normal and expected, especially given the successive crises plaguing the automotive sector in Germany and Europe in general. This has led the German giant Volkswagen to cut jobs and close some factories, a clear indication of a real crisis within the company.
The decline in the value of the Volkswagen Group is inevitably reflected in the financial statements of Porsche Holding. According to Bild and Springer, the company is considering reducing its stake to 50% or even 45% due to the decline in Volkswagen’s value, allowing it to remain the largest shareholder. However, Porsche SE denied the news and stated that there is no update regarding its position with Volkswagen.
Despite Porsche Holding denying reports of selling its stake in Volkswagen, the matter is likely to come sooner or later, as the automotive sector’s problems significantly impact investment within the sector. Shareholders in European automakers will seek a way out that guarantees their capital with minimal damage, and this is what Porsche is attempting to do.
