| 12:33 PM EST

VW Confirms €200 Billion Market Cap Goal

Volkswagen AG verifies that it intends to hike its current market value to €200 billion ($222 billion) from the current €95 billion.
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Volkswagen AG verifies that it hopes to hike its current market value to €200 billion ($222 billion) from the current €95 billion.

Bloomberg News mentioned the target earlier this month but didn’t say when the carmaker hopes to achieve it. Chief Financial officer Frank Witter confirms the goal—without setting a deadline—in an internal newsletter that describes the effort as critical to the “future viability of the company.”

Bloomberg notes that VW Group outperforms Toyota Motor Corp. in sales and revenue. But Toyota, with more efficient production, has more than twice the market value. A higher value, Witter says, “reflects profitability and financial strength.”

VW has embarked on a €44 billion push into electrification, digitalization and connectivity. But the company’s tepid valuation suggests investors aren’t confident about the expected results.

Witter says VW can boost its market cap with stronger branding, more efficient production, greater software development expertise, stronger growth in China and commit fully to achieving carbon neutrality.

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