VW Group values ​​Porsche at $ 70 billion in IPO

A photo of five red Porsches on a race track.

Photo: Porsche

Volkswagen Group valued Porsche at $ 75 billion as a sports car company hits the stock market, Mercedes is recalling more than 150,000 cars for faulty windows, and nobody wants to make engines for supersonic passenger jets. All this and more The morning shift for September 19, 2022.

1st gear: VW supports Porsche I.sa $ 75 billion Agency

These have been busy months for the VW Group. F.first the German carmaker has appointed Oliver Blume as its new CEO and now the company is preparing to launch Porsche on the German stock market for the first time.

Porsche’s entry the stock market has been in the works for a while now, and it looks like the sale may finally approach. When that time comes in “late September”, the initial public offering (IPO) will be the second largest in Germany’s history, Reuters reports.

In the initial sale, VW will evaluate Porsche’s shares from € 76.50 to € 82.50, which is equivalent to a valuation between 70 billion euros e 75 billion euros (or around 75.1 billion dollars at today’s exchange rate). According to Reuters:

“As part of the listing, 911 million Porsche AG shares will be divided into 455.5 million preferred shares and 455.5 million common shares. Up to 113,875,000 non-voting preferred shares will be placed with investors during the IPO.

“Sovereign wealth funds from Qatar, Abu Dhabi and Norway, as well as mutual fund firm T. Rowe Price, will subscribe to preferred shares worth € 3.68 billion as key investors, at the top of the valuation, he said. Volkswagen “.

Before the sale, there is a stock market prospectus it should be published later today. After this time, institutional and private investors will be able to buy Porsche shares.

The proceeds from the sale of the shares are expected to reach up to 19.5 billion. According to Reuters, 49% of this income will be divided among shareholders “at the beginning of 2023 as a special dividend”.

2nd gear: Car manufacturers can’t produce electric vehicles fast enough

Presales, waiting lists, and hiring huge numbers of depots from budding buyers have all helped create hype around electric vehicles. But now, when carmakers around the world start producing electric vehicles in significant quantities, they are doing so struggling to keep up with demand they built.

According to a new relationship in Wall Street newspaperexecutives across the industry have gone from worrying about attracting enough buyers electric vehicles, until now fearing they “can’t build them fast enough”. The WSJ relationships:

“Electric vehicles represent only about 6% of total US vehicle sales. But that percentage has tripled in the past two years as sales of other types of vehicles have fallen, according to research firm Motor Intelligence. General Motors Co., Ford, Rivian Automotive Inc. and other automakers say they have waiting lists of more than a year for their new electric models.

“As of July, five of the six best-selling vehicles in the US were electric or plug-in hybrids, pairing a battery with a gas engine, according to data from consumer site Edmunds.com. Electric vehicles were sold on average 19 days in July compared to 47 days a year earlier and were four days faster than internal combustion vehicles, Edmunds data shows.

The WSJ says the pressure is now on automakers to capitalize on this boom, which he was spurred on by extensions of the tax credit offered by the law on the reduction of inflation.

But the first predictions on the demand for electric vehicles, as well as the struggle to get factories online to start building electric cars means that the automakers are at the bottom right now.

The site reports that it may take “more than a year” for the industry to increase its production capacity to meet demand. Besides, it has supply chain problems and computer chip shortage to deal with.

All of this means buyers have long wait times as the industry tries to clean up the backlog of electric vehicle orders.

3rd gear: Dacia holds back electrification

wWhile most carmakers are scrambling to meet the demand for electric vehicles, a cheap car company in Europe has no plans to switch to electrification. According to ReutersRomanian carmaker Dacia “plans to stick to heat engines for as long as possible.”

Dacia, which is owned by French group Renault, says it “likely” will switch to battery power in 2030, five years later than its parent company. At that point, the company will have no other choice, how gas engines will be banned in Europe in 2035.

Dacia CEO Denis Le Vot told Reuters: “Everyone has their role to play. Renault will push to be the champion of electric motors, this is at risk. Dacia exists for this too.

“Depending on how quickly the market converts to electric motors and customer appetite, Dacia is here. The two can coexist in an intimate way “.

Till now, the company offers only one electric vehicle in its rangethe Dacia Spring, which represents 12% of sales. But the company will add a hybrid model to this BEV range, scheduled for release in 2023.

4th gear: Mercedes recalls 161,000 cars

If there is one word that sums up 2022 well, it is “recall”. Every automaker appears to be getting into the recall this year. Ford has issued more than 50 separate recalls, Toyota brought nearly 50,000 pickups and even Ferrari had to issue a recall.

Now, Mercedes is involved after discovering a defect in the rear window of more than 161,000 cars. According to Automotive Newson some GLE and GLS models produced between 2020 and 2022, the trim bars on the rear door windows may come off. Automotive News relationships:

“An estimate in a September 12 statement indicates that approximately 161,000 vehicles are affected.

Dealers will inspect and repair trim bars for free, a statement read. The owner’s notification letters will be sent on November 11th. The detached bars could cause a road hazard or increase the risk of an accident, NHTSA said.

The problem is said to affect the Mercedes-Benz, AMG and Maybach variants, proving that even the rich are not free from recall issues. This latest Mercedes announcement brings the total number of vehicles recalled by the German automaker up to 722,000, according to NHTSA data.

If you are concerned that your car may be affected by one of these recalls, the NHTSA has an app for that.

5th gear: Nobody wants to make a supersonic engine

Things are not going well for the Supersonic Boom boot at the moment. Last week the company, which is planning to bring supersonic passenger air return to the market, lost its Rolls Royce engine manufacturer. And now, it seems like there aren’t many companies jumping to fill this gap.

According to Business Insider, engine manufacturers such as GE Aviation, Honeywell and Safran Aircraft Engines have all said they are not interested in making engines for supersonic passenger travel. Pratt & Whitney, which manufactures supersonic engines for the US Air Force’s F-22 Raptor, is also “reluctant to participate” in the project. Business Insider Report:

“However, Boom has a hard time finding an engine manufacturer and producing an environmentally friendly power plant. The company hopes its $ 200 million Overture jets will run on 100% sustainable aviation fuel (SAF). ”

But if he can’t find a power plant that can propel the plane beyond Mach 1, then Boom may have no choice but to begin the costly process of designing, building and testing its own supersonic engines.

Inversion: 🙂

Neutral: American humor

Happy Monday, did you have a nice weekend? I went to see a murder mystery / comedy movie See how they run Saturday was fun. But it was also the first time I noticed the stark contrast between British and American humor in the flesh. Throughout the film, my two other British friends and I laughed at completely different moments in comparison to the Americans in the crowd. He looked strange.


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