Consultation on the draft directive for securing employee protection during law violations concerning employee protection regulations, specifically focusing on instances of multiple breaches in employee protection rules.
Porsche, the iconic German sports car manufacturer, has been demoted from the DAX index to the MDax, due to technical factors such as a relatively low freely tradable float of around 12 percent. This demotion, announced by the Deutsche Börse on Wednesday evening, will take effect on September 22.
The decline in Porsche's stock price to around 45 euros is symbolic of the current crisis in the German automotive industry. The industry is struggling with falling profits, putting pressure on company stock prices. However, Porsche CEO Oliver Blume remains confident that investors will continue to recognize the value of the stock.
Blume, who also holds the position of CEO at the Volkswagen group, defended his dual role, stating that it brings many benefits to both companies. He aims to lead both companies "to one hundred percent", but has hinted at his departure from the Porsche helm without specifying a concrete timeframe.
Porsche went public in September 2022, marking one of the largest IPOs in German economic history. The shares started trading at an issue price of 82.50 euros. In the following months, the stock price rose to almost 120 euros.
To facilitate Porsche's reentry into the DAX index, Blume has tasked an institution to work towards this goal, aiming for it to happen starting next year. This initiative is part of a recovery from 2025's "absolute low point" and restructuring phase, with expectations for performance improvement thereafter.
Despite the current demotion, Porsche remains one of the major listed companies in Germany, given its total market capitalization and brand radiance. The recent restructuring programs are expected to result in higher stock prices for Porsche in the future.
Blume mentioned that the dual role is not intended to be permanent, and he aims to lead both companies to success. Porsche, currently listed in the MDax index, will strive to return to the DAX index, symbolizing its continued importance in the German economy.
