Porsche CEO Oliver Blume is feeling confident these days. Despite recent rumors regarding a potential grouping of VW Group’s premium brands (Audi, Bentley, Bugatti, Porsche, and Lamborghini) into a single unit to spin-off for an initial public offering with a potential valuation as high as $18 billion, Porsche sales remain stronger than ever. Perhaps that’s why Blume doesn’t see the need for a stock market listing, according to Reuters.
Blume is confident the brand will surpass last year’s record sales year by the end of this December, so why is an IPO even necessary? In the first nine months of this year, Porsche sold an impressive 196,562 vehicles worldwide. Sales of all models, including the 911 and Panamera, are up. Both the Chinese and European markets have grown this year, so far by 4 and 9 percent, respectively.
“In the light of these good numbers we expect that we can reach last year’s record again,” Blume said last week. In 2017, Porsche delivered a total of 246,375 vehicles. Given this year’s sales figures so far, Porsche is very much on track to beat its own record. But what about the huge investments needed for, say, electric car technology developments? Wouldn't the lucrative benefits of an IPO provide for that?
Yes, but Blume believes partnerships with other companies (not necessarily automakers) and leaner production and modernized development processes are the better way to go. Take the Panamera Sport Turismo, for example.
Blume boasted that it “was launched without building physical prototype vehicles,” meaning it was developed digitally. Another useful tool Porsche has is fellow VW brand Audi. Because both brands have many things in common they’re able to pool their resources together on things like platforms, modules, and other components.
“A good example of such synergies is our cooperation in the area of battery cells for our electric cars. Both of us, Porsche and Audi, source them from LG Chem, which has built up a plant for this in Poland,” Blume added. Despite Blume’s confidence, does the VW Group board of directors feel the same way? Although Porsche is doing great these days, the desire for greater profits could change easily the current situation.
