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· Posted on
February 21, 2024

Porsche may be spun off from Volkswagen

Volkswagen recognises Porsche is the Beyoncé to its Destiny's Child, plans to let it go its own way.

What's the key learning?

  • Volkswagen is considering spinning off Porsche and bringing in some much needed cash into the business
  • Sometimes the sum of all the parts can be greater than the whole
  • Volkswagen is using this split as a way to set Porsche free from its legacy business and use the new cash injection to accelerate its electric vehicle division.

Background: The Volkswagen Group is the German car manufacturer founded back in 1937. But there's more to this group than the name suggests.

What happened: The Volkswagen Group owns a majority share in Audi, Scania and Porsche and also wholly owns Skoda, Lamborghini and Ducati.

What else: The last few years have been rough on old Volkswagen (Diesel-gate scandal anyone?). So now, they're considering spinning off the Porsche-profit-puppy and bringing in some much needed cashola.

🔔 What's the key learning?

💡Sometimes the sum of all the parts can be greater than the whole. We know that electric vehicles are HOT in the eyes of investors… so car manufacturers are reshaping their businesses accordingly.

💡Porsche is 🔥 right now. It’s expected that 50% of the carmaker's sales will be electric by 2025. Whereas VW is about 5 years behind, so they're kinda dragging Porsche down.

💡Volkswagen is using this split as a way to set Porsche free from its legacy business and use the new cash injection to accelerate its electric vehicle division.

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