Volkswagen Prepares IPO for Traton
By Patrick Thomas
Volkswagen AG plans to pursue an initial public offering for its Traton SE (T9R.BE) truck division, the company said on Monday.
The German auto maker said the IPO is expected to be "before the 2019 summer break" and is subject to further capital market developments.
Volkswagen postponed an IPO for the unit in March, citing challenging market conditions. The delay was unexpected since Volkswagen had transformed Traton into a separate wholly owned stock company to prepare for a potential listing.
Traton said earlier this month that is still planned to become an independent company even after the IPO was postponed. In its latest quarter, Traton's vehicle sales were up 7.4% from a year earlier, boosted mostly by the favorable development of Europe and Brazil.
Volkswagen also Monday that it is investing slightly less than 1 billion euros (about $1.12 billion) in an electric vehicle battery cell plant in Germany.
"We are pressing ahead with the electrification and digitalization of our fleet like no other automotive company," Volkswagen Chief Executive Herbert Diess said in a statement.
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