Volkswagen AG has successfully raised approximately €360 million ($393 million) by selling a 2.2% stake in Traton SE. The German automaker sold approximately 11 million shares of its truck subsidiary through an overnight sale to boost liquidity in the stock market. The sale was priced at €32.75 per share, marking an 8% discount from Traton’s closing price in Frankfurt. Following the sale, Traton's shares experienced a decline of up to 7.6%, limiting its yearly gains to around 20%.

Volkswagen, Europe’s largest car manufacturer, is undertaking cost-cutting measures and reducing staff numbers in response to escalating costs and uncertainties in key markets. The decision to sell its stake in Traton was influenced by a pivotal spending package passed by German lawmakers, which will facilitate access to substantial debt financing for defense and infrastructure projects.

Major financial institutions such as Bank of America Corp., Citigroup Inc., and JPMorgan Chase & Co. were at the forefront of the stock sale. Volkswagen had been contemplating a reduction in its 90% stake in Traton for some time and had explored the possibility of selling up to €1 billion ($1.1 billion) last spring when there was a surge in Traton’s share price. Despite this, Volkswagen's CEO, Oliver Blume, had expressed the company's intention to maintain a stake of at least 75% plus one share in Traton.

The stock sale aligns with the trend of corporations divesting from spun-off units, taking advantage of heightened share prices in the European market. Volkswagen is also reported to have raised $3.5 billion from bond sales in the US, following a similar move by BMW AG, to address general corporate requirements amid escalating trade tensions.