Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Volkswagen shares down amid concerns over cost-cutting agreement

admin by admin
December 23, 2024
in Stock
0
Volkswagen shares down amid concerns over cost-cutting agreement
0
SHARES
10
VIEWS
Share on FacebookShare on Twitter

Investing.com — Shares of Volkswagen (ETR:VOWG_p) traded over 2% lower on Monday following the announcement of a labor cost reduction agreement with its German Works Council. 

While the company presented the deal as a step forward in controlling costs, analysts at Bernstein expressed skepticism about its effectiveness in meeting the ambitious cost-saving targets set by management.

The “Zukunft Volkswagen” agreement, finalized after prolonged negotiations and warning strikes, aims to achieve annual savings of over €4 billion through workforce reductions, production adjustments, and structural measures. 

However, the deal avoids plant closures and guarantees job security until 2030, relying instead on voluntary retirements and natural attrition to reduce the workforce by 35,000 over six years. 

Bernstein analysts noted that these measures appear insufficient to meet Volkswagen’s goals of reducing wage levels by 16-19%, as the expected reductions are estimated at just 4-7%.

Investors are particularly concerned about the deal’s immediate financial impact, with Volkswagen unable to quantify the costs of these measures or their effect on 2024 earnings. 

Bernstein flagged this lack of clarity as a key factor undermining confidence in the stock, emphasizing that the market will remain cautious until further details are disclosed.

Adding to the pressure, the German automaker faces broader challenges, including overcapacity at its domestic plants and intensifying competition from Chinese electric vehicle manufacturers in Europe.

This post appeared first on investing.com

Previous Post

Hyatt in exclusive talks with Playa Hotels on options, including buyout

Next Post

Novo Nordisk shares rebound 8%: can European markets sustain the rally?

admin

admin

Next Post
Novo Nordisk shares rebound 8%: can European markets sustain the rally?

Novo Nordisk shares rebound 8%: can European markets sustain the rally?

Trending News

Coinbase, Ripple bosses see massive wealth surge post Trump’s victory: report

Coinbase, Ripple bosses see massive wealth surge post Trump’s victory: report

December 26, 2024
Eli Lilly stock surges 11% on obesity pill’s success in first late-stage trial

Eli Lilly stock surges 11% on obesity pill’s success in first late-stage trial

April 17, 2025
WhatsApp’s ad-free days are over as Meta begins monetization push

WhatsApp’s ad-free days are over as Meta begins monetization push

June 16, 2025
Subscribe to Insightful Word


    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025
    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    August 7, 2025
    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    August 7, 2025

    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025

    Latest News

    • Dow futures soar 250 points today: 5 things to know before Wall Street opens
    • Affirm stock price is rising: is it a buy before earnings?
    • Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.