A rare voice of support came from The Wall Street Journal’s Heard on the Street column which said maybe the pessimism towards VW has been overdone.
VW’s own brand has already announced an $11 billion savings and cost cuts plan by 2026 to help meet a return on sales target of 6.5%. Unions aren’t happy, and that reminds investors of the weird management structure at VW said to value worker’s rights above shareholder profits. Despite all this, Jefferies said it sees positive change signals despite recent trends, as management revises key strategic principles that drove excess capital spending for decades. Jefferies seesas a beacon for VW progress. Stellantis has impressed investors with its cost-cutting after the merger of Peugeot-Citroen and other brands including Fiat, Chrysler and Opel Vauxhall,.
VW has invested $700 million in Chinese EV maker Xpeng and they will develop two Volkswagen-branded EVs for launch in 2026. Volkswagen’s Audi brand will also work with state-owned Chinese carmaker SAIC to develop EVs in the country.“ understands VW’s specificity and ability to make difficult decisions, including on cost and headcount, all of which VW delivered in the past when co-determination partners are on-board and competitiveness at risk,” Jefferies said.
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Source: WSJ - 🏆 98. / 63 Read more »