German battery manufacturer Varta is facing a severe financial crisis, with its shares plummeting by over 80% to a record low of 2.10 euros. The company, burdened with nearly 500 million euros in debt, has announced plans to file for a pre-insolvency restructuring procedure at the Stuttgart District Court. Varta’s CEO, Michael Ostermann, stated that the company’s current debt situation makes it unlikely to achieve a positive business result.In a potential lifeline, Porsche is considering taking a stake in Varta to help stabilize the company and secure its battery technology, particularly the V4Drive cell used in the Porsche 911 GTS. Porsche’s involvement could prevent the sale of Varta’s V4Drive subsidiary and maintain key technology at the German location. However, the restructuring plans being considered would reduce Varta’s registered capital to zero, potentially leaving current shareholders with worthless shares.This development comes amid broader challenges in the European electric vehicle (EV) market. Volkswagen, the world’s third-largest automaker, reported a decline in overall vehicle sales, with a 15% decrease in Europe despite a 124% increase in EV sales. Similarly, Ford is reassessing its European EV production plans due to lower-than-expected demand. Marin Gjaja, the main operating director of Ford’s Model E electrification division, stated that transitioning to fully electric vehicles by 2030 is ‘not optimal for business and customers’.The slowdown in EV adoption is reflected in recent sales data. According to ACEA, electric car sales in June fell by 18.1% in Germany, 15% in the Netherlands, and 10.3% in France. This trend raises questions about the future of the EV market in Europe and the strategies of major automakers in the face of changing consumer demand and economic conditions.
Key points
- Varta, a German battery manufacturer, is facing severe financial difficulties and considering restructuring options that could wipe out shareholder value.
- Porsche is considering taking a stake in Varta to stabilize the company and secure battery technology for its vehicles.
- Major automakers like Volkswagen and Ford are reassessing their EV strategies due to slower-than-expected demand in Europe.
Contradictions👾While some sources report Varta’s shares dropping to 2.
10 euros, others mention 2.
20 euros.
This minor discrepancy could be due to different reporting times or stock fluctuations.
