VW’s Spun off Boutique Brands Could Bring a Bundle on Stock Market

Volkswagen Group has been looking at spinning off its ultra-lux brands. And Porsche’s CFO said that the new group could be worth serious cash.

“We would likely be viewed as a luxury goods manufacturer and the multiples are completely different compared with a normal premium brand,” Lutz Meschke told reporters at Porsche’s development center, Automotive News reports. “A valuation of 60 billion to 70 billion euros certainly doesn’t sound like a stretch.” He added that as much as 100 billion euros was conceivable.

That new group would put Porsche into a new branch of the company along with Bentley, Bugatti, and Lamborghini. Meschke said that applying the same stock market metrics to those companies as are applied to Ferrari, then the Super Premium Brand Group could be worth more than three times that automaker. If it had a stock offering, the group would be the third automaker to do so recently, after Chinese electric car maker Nio and Aston Martin.

Volkswagen Group’s current valuation is about 69 billion euros which means that the children would be worth more than the parent.

Separating the groups could allow VW to focus more on its own core car brands. It would also mean that the automaker couldn’t conceal losses there with profits from the boutique brands.

[source: Automotive News]