New Straits Times
VW mulls options for truck division
FRANKFURT: Volkswagen AG (VW) officials are discussing options to prepare the truck division for access to the capital markets, potentially paving the way for an initial public offering of shares or a bond sale by the unit, according to people familiar with the matter.
Deliberations at a meeting last week included changing the division’s legal structure to a private limited company under German rules or the European equivalent Societas Europaea, said the people. A decision may be made in the next few weeks, but the discussions are complex and might drag on.
“Currently we are focusing on implementing our strategy and on driving the transition from a ‘start-up company’ into a mature corporation,” said VW’s truck unit on Saturday, adding that “we keep all options open”.
Global carmakers have embarked on sweeping organisational changes as the industry faces a seismic shift towards electric vehicles, autonomous cars and digital services such as ride hailing.
Granting the VW truck operation more independence within the world’s largest carmaker would help to build confidence among investors that VW is considering deeper organisational changes to become more efficient in the wake of the dieselemission scandal that erupted in September 2015.
The German company embarked on a push to become less centralised as part of a new strategy, but an asset review announced almost two years ago to identify non-core operations hasn’t led to a tangible results so far.