Volkswagen is confident that cost cuts will help it raise profit margins in the coming years, the worlds secondlargest carmaker said on Tuesday, a day after outlining an ambitious electric mobility expansion.

Our good performance in 2020, a year dominated by crisis, will give us momentum for accelerating our transformation, Chief Executive Herbert Diess said in a statement.

Asked about the closelywatched issue of a potential listing of luxury division Porsche AG, Diess said there was no need for immediate action given Porsches importance to the carmakers turnaround efforts.

Thats why you need to think very very hard about every single step, he said.

Preferred shares in the company rose as much as 6.5 to their highest level since July 13, 2015, giving the carmaker a market valuation of more than 118 billion euros 141 billion. They are up more than a third yeartodate.

Volkswagen aims to more than double deliveries of electric vehicles to 1 million this year, it said, adding it would also apply a standardised platform model introduced for vehicle production years ago to software, batteries and charging.

Diess comments come a day after Volkswagen unveiled plans to build half a dozen battery cell plants in Europe and expand infrastructure for charging electric vehicles globally, accelerating efforts to overtake Tesla.

Volkswagen confirmed it aimed for an operating margin of 78 by 2025, adding it would likely end 2021 at the upper end of a 56.5 target corridor….