Sharjah24 – AFP: German auto giant Volkswagen said Tuesday it is drawing up plans to list its luxury brand Porsche as it looks to raise the funds for its move to electric vehicles.

Volkswagen and its largest shareholder Porsche SE had "negotiated a framework agreement which should form the basis for further steps" towards a separate stock market listing, the carmaker said in a statement.

A "final decision" on the future of the storied sports car brand had not yet been taken, the group said.

The flotation would represent a major shake up at Volkswagen, which is searching for a ways to finance its shift away from traditional combustion engines towards electric vehicles.

The group plans to put some 25 percent of Porsche shares on the market, a source inside the company who asked not to be named told AFP, confirming press reports.

Volkswagen group's parent company and main shareholder is Porsche SE, which is also listed on the Frankfurt Stock Exchange.

Shares in Porsche SE jumped more than 11 percent Tuesday, those of Volkswagen by nearly 8 percent, in a market hit by the Ukraine crisis.