Porsche no longer a blue-chip company in Germany
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Its CEO vowed that the company, which is undergoing restructuring, would return 'as quickly as possible' to the listing of Germany’s 40 most valuable companies.
PHOTO: REUTERS
Melissa Eddy
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Three years after its spectacular market debut, German carmaker Porsche will no longer be listed on Frankfurt, Germany’s leading stock exchange, a setback that comes as it battles with falling demand and US President Donald Trump’s tariffs on cars imported from Europe.
The change will be effective on Sept 22, said Stoxx which owns the Frankfurt exchange.
Porsche, along with biopharmaceutical company Sartorius, will move to the MDAX index from the DAX index, where Germany’s leading blue-chip companies are listed. Machinery and technology company GEA Group and internet real estate company Scout24 will replace them on the DAX.
Mr Oliver Blume, chief executive of both Porsche and its majority shareholder, Volkswagen, vowed in remarks to German media on Sept 4 that the company, which is undergoing restructuring, would return “as quickly as possible” to the listing of Germany’s 40 most valuable companies.
Porsche’s shares have lost a third of their value in the past 12 months, forcing it to lower its outlook three times in 2025, as buyers in the world’s largest automobile market, China, have turned away from German luxury carmakers in favour of home-grown rivals.
The US and the European Union’s trade agreement, which places 15 per cent import duties on all cars coming into America, is also weighing on Porsche. It produces all its vehicles in Europe and now faces higher costs for selling to the US, its largest market.
Analysts said Porsche had the potential to turn things around, but the effort would take time and require it to scale back and introduce a new generation of products with combustion or hybrid powertrains.
“Porsche’s brand is still valuable and exclusive, but the turnaround will take two to three years,” said UBS analyst Patrick Hummel.
From the time of Porsche’s initial public offering, some analysts were sceptical about Mr Blume’s dual roles. That has come under more intense scrutiny as Porsche’s troubles have increased in recent months.
Asked whether he had a timeline for when he was planning to step down, he demurred but indicated that he was not insisting on remaining indefinitely in the role.
“It is not a secret that this double role is not designed for the long term,” he said. NYTIMES
