autoevolution
 

Porsche's VW Stake Increases Automakers' Shares

News that Porsche raised its Volkswagen stake to 50.8 percent and reports that the German manufacturer targets another 24.2 percent had a strong impact over the automotive market, with shares of several manufacturer increasing in a single day. According to a report issued by The Financial Times, Renault is one of the companies that benefited from the move as it shares recovered from the initial decrease on Monday to €20.09, 4 percent higher.

In additional, ordinary shares of Volkswagen “jumped 16.7 percent at one point, closing up 11.8 percent at €285, while Porsche gained 1.2 percent to €54.55,” the aforementioned source wrote.

Although the Porsche – Volkswagen stake increase automatically required Porsche to make a bid for Swedish truck maker Scania, which Volkswagen owns with a stake of 69 percent, the German sport car manufacturer said it had no interest in this venture. Even though this fact was expected to have a strong impact over Scania's shares, the Stockholm stock exchange was closed for a holiday yesterday, according to the aforementioned source.

But beside all of these, Porsche is now regarded as a company that closely analyzes its future strategy, with analysts explaining that the German carmaker's long-term strategy could prove to be its secret weapon to successful market evolution.

"European carmakers have problems at the moment, but Porsche is looking at the long term while the market is looking at the next six months," Thomas Nagel of Equinet told The Financial Times.

Porsche yesterday said it increased its stake in German carmaker Volkswagen to 50.76 percent, an increase of 8.16 points from the 42.6 percent it initially owned.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories