VW Confirms €200 Billion Market Cap Goal
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.
Dan Nicholson is vice president of General Motors Global Propulsion Systems, the organization that had been “GM Powertrain” for 24 years.
When Suzuki developed the GSX1300R, it set out to build the fastest mass-production motorcycle on the market. As competitors gained ground and stringent emission regulations were set, Suzuki set out to reinvent the bike.
Although the RAV4 has plenty of heritage in the small crossover segment, competition has gotten a whole lot tougher, so Toyota has made significant changes to the fourth-generation model.