Volkswagen intends to inform investors about the goals of its brand groups and divisions in a series of events.

"The Capital Markets Day on June 21 is the prelude to regular capital market events with investors and analysts," said a person familiar with the events to the Reuters news agency. Next Wednesday, the plan is to provide an overview of the Group's development and describe the target picture for the next three to four years. A second person confirmed the information. Experts assume that Volkswagen first wants to sound out the interest of investors and then determine the order for further capital market days.

Subsequently, there will be individual follow-up events over a longer period of time, including on the brand groups and the central technology platforms such as battery technology and software, according to company sources. At these events, these parts of the company will present their virtual equity stories in detail using measurable parameters such as cash flow and return targets. "The virtual equity stories promote the focus and ambitions of the individual brands. And they increase the transparency of the values inherent in our brands and business units."

Volkswagen CEO Oliver Blume wants to convince investors and owners of his strategy at an initial event at the Hockenheimring on Wednesday. He hopes that investors will recognize potential in the Wolfsburg multi-brand group and that the share price will benefit from this. The Porsche and Piech family owners expect Blume to repeat Porsche's success at Volkswagen and trim the Group for profitability. To this end, the 55-year-old has instructed all brand groups and divisions to focus more strongly on capital market criteria. This should increase the profitability of the Group as a whole.

On Wednesday, the long-weakening VW main brand announced savings and efficiency improvements worth ten billion euros by 2026. This is intended to increase the return on sales from 3.6 percent to 6.5 percent. Among other things, production is to be dovetailed with that of the sister brands Skoda and Seat/Cupra. The plants are to work more efficiently by producing for several brands at the same time and thus be able to react more flexibly to fluctuations in demand. This is intended to keep the yield level stable even in difficult economic times. At the same time, Volkswagen wants to manage without job cuts.

Audi, which is regarded as the biggest construction site alongside VW, is also working on a cost-cutting concept. "Without further measures, we will not achieve a higher return on sales," Audi boss Markus Duesmann told the Reuters news agency on Thursday.

Investors are currently following the development of the battery subsidiary PowerCo with great interest. Chief Technology Officer Thomas Schmall said at an event in Berlin on Friday that PowerCo should be ready for investors to participate at the beginning of next year. He thus narrowed down the timeframe for a possible investor participation. CFO Arno Antlitz recently mentioned 2024 as a possible date at a Reuters event, but did not specify the date. In a further step, an IPO is considered conceivable.

(Edited by Olaf Brenner. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).

- by Jan Schwartz and Victoria Waldersee