Oliver Blume, CEO of Porsche AG, has defended the company’s current trajectory following its recent removal from Germany’s leading stock index, the DAX and has expressed a determination to regain its position
“The DAX will be poorer by one of Germany’s most valuable companies Considering Porsche’s overall market capitalization and brand recognition, we remain among the major publicly listed companies in Germany” Blume stated in an interview with the “Frankfurter Allgemeine Zeitung” (FAZ)
The Deutsche Börse announced on Wednesday evening that Porsche AG, among others, would be removed from the group of 40 leading listed companies in September Porsche had directly ascended into the DAX following its initial public offering three years ago, but its share price has since declined significantly
Blume attributes the relegation to the mid-cap M-Dax primarily to technical factors “The Deutsche Börse, according to its rules, bases the DAX composition on free float – and this is comparatively low at Porsche AG with just over twelve percent” He explained that Porsche is being measured against companies with lower market capitalizations but significantly higher free float These technicalities meant the company narrowly missed retention this round “With the new direction of Porsche, we have a clear ambition to return to the DAX as soon as possible” Blume said ahead of the IAA mobility show in Munich
Porsche currently faces significant challenges in its two most important markets, the United States and China Blume defended the current leadership’s strategy to overcome these hurdles, stating, “The fundamentals are sound and Porsche’s potential remains We have a consistent strategy, clear priorities and a long-term approach This is the foundation for future success In terms of the value of Porsche, we continue to operate in the top league
Blume also once again defended his dual role as CEO of the Volkswagen Group and Porsche AG, a position that has drawn criticism from shareholder representatives and, recently, the Volkswagen Works Council “The dual role within the Volkswagen Group and at Porsche AG brings many advantages to both companies It was deliberately structured this way from the beginning I aim to lead both companies to one hundred percent – and we have achieved a lot in a short period I do it with great pleasure and passion And it is no secret that this dual role is not intended to be permanent” Blume has previously hinted at stepping down from the leadership of Porsche, but did not provide a specific timeline