VW places battery unit IPO on backburner
VOLKSWAGEN is pushing back plans to seek outside investors for its battery unit after slower demand for electric vehicles dims prospects for the business, with the industry facing an increasingly daunting reality in the EV transition. Europe’s biggest carmaker has also put talks with investors on the backburner as it faces doubts it can make its own batteries at scale, people familiar with the matter said, declining to be named detailing internal matters. The company is no longer prioritising stake sales or a potential listing of its battery company PowerCo business this year or next, they said. VW preference shares turned negative following the news, falling as much as 1 per cent. The stock is down 1.9 per cent over the past year, giving the manufacturer a valuation of US$69.3 billion. The situation remains fluid and VW could still move forward with the plans if the market improves, according to the people. Initial public offerings had their worst year in 2023 in more than a decad