The billionaire Porsche and Piech families are reportedly considering the option of reducing their voting stake in Volkswagen AG. This potential move, reported by German tabloid Bild Zeitung, highlights ongoing strategic discussions within the families about their stakes in VW, a major player in the automotive industry.
Porsche Automobil Holding SE, the primary investment vehicle for the Porsche and Piech families, is engaged in discussions about possibly lowering its voting stake in Volkswagen AG from over 53% to somewhere between 50% and 45%. As of now, there is no unanimous decision within the families regarding any sale of shares. Achieving consensus among the clan is crucial for such a decision to move forward.
A representative from Porsche SE stated via email that there are no current concrete plans to sell VW shares, nor have there been any in 2024. Additionally, there have been no talks with investors about potential sales of VW shares. This statement suggests that any strategic changes in their holdings are still in the deliberation stage, with no immediate actions planned.
Volkswagen shares are structured in such a way that the common stock holds voting rights, while the preferred stock, more commonly traded and listed in Germany’s DAX blue-chip index, does not. This distinctive share arrangement influences how changes in voting stakes might impact overall control of the company by the holder parties.
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Porsche SE has projected an after-tax loss of around €20 billion for the fiscal year 2024, primarily due to devaluations in its investment holdings. This loss, heavily tied to a non-cash impairment of €19.9 billion on its VW investment, reflects significant financial pressures facing some of Europe’s leading automotive firms. The disclosure of such figures underscores broader challenges within the sector.
While discussions continue within the Porsche and Piech families about the future of their VW stakes, any substantial changes remain speculative at this point. As the automotive industry evolves amidst financial pressures, the strategies of major stakeholders like these families will be closely watched for their potential influence on the market.
