Automobile giant Volkswagen plans to resume preparations for its truck unit Traton’s IPO. At first, the IPO was put on hold in March owing to uncertain market conditions.
Volkswagen finance chief Frank Witter said in a statement, “Current market assessments have encouraged us to take today’s decision.” Previously, Volkswagen had said that it could list up to 25 percent of Traton in a deal anticipated to be worth $6.7 billion.
The company said that its supervisory board and board of management have agreed to prepare for Traton’s IPO which is ‘subject to further market developments’.
Traton CEO Andreas Renschler said: “Our groundwork has been excellent and we are now fully focused on a potential IPO before the summer break.”
The truck unit Traton is a subsidiary of Volkswagen and one of the world’s leading commercial vehicle manufacturers. Traton includes MAN, Scania and Volkswagen Caminhões e Ônibus brands.
Volkswagen said on Monday that it would encourage talks to establish a new plant in eastern Europe. The plant will manufacture vehicles under multiple car brands. Mark Langendorf of the group’s communications department said in an interview with Blic that the company is still in the early stages of exploring more options. One of the few considerations for finalising on the location is ‘the favourable economic environment and the multitude of parts suppliers’.
Last year, Volkswagen chief Herbert Diess said that Volkswagen’s brand factory in Eastern Europe will start production after 2022. Then, Volkswagen will reportedly shift production of the Skoda Karoq and Seat Ateca SUVs to the new plant which would employ 5,000 people.