According to Murat Aksel, head of procurement at Volkswagen, the chip shortages are no longer expected to end in 2023, and the German automaker is preparing to sustain the business with the new normal of supply chain interruptions.
Aksel stated that it's a structural issue that can't be rectified so soon, and investments for new capacity are currently on track. However, there will still be a structural gap in semiconductors up to 2023.
On the other side, the supply of wire harnesses, which was in short supply following Russia's invasion of Ukraine in February, is no longer a problem, and is operating at a stable rate again, Aksel added.
Additionally, Volkswagen is making significant investments in early detection, but Aksel cautioned that what’s seen in the supply chains over the past two years, is the new normal. However, there are chances that it might get much more complex and tough with the current geopolitical challenges.
Meanwhile, the luxury sports car maker Dr.-Ing. h.c. F. Porsche AG is expected to be valued at up to USD 75.1 billion by Volkswagen AG, making it the second-largest initial public offering (IPO) in Germany's history.
Volkswagen will value preferred shares between USD 76.39 and USD 82.38 per share in the IPO, converting to a valuation between USD 70 billion and USD 75.1 billion, according to the automaker.
It's interesting to note that, according to the German manufacturer, it would rank as the second-largest initial public offering (IPO) in European history.
It is important to note that as part of the listing, 911 million shares of Porsche will be divided into 455.5 million preferred shares and 455.5 million common shares. Investors may get no-voting rights of preferred shares with an issue size of 113,875,000 at any time during the IPO.
Notably, institutional and private investors will be able to subscribe to Porsche shares following the publication of a stock market prospectus.