Volkswagen Stock: Shares Plummet Amid Cost-Cutting Talks

Volkswagen's stock took a significant hit on Wednesday, dropping by over 5% as discussions about cost-saving measures and potential site closures continue to unsettle investors. The ongoing negotiations between the company's management and labor representatives have yet to reach a consensus, with Volkswagen's board stating that site closures or job cuts are not preconditions for further talks. However, the uncertainty surrounding these negotiations, coupled with impending warning strikes in the metal and electrical industry affecting VW's subsidiary Audi, has created a cloud of apprehension in the market.

Q3 Results Compound Stock Pressure

Adding to the downward pressure on Volkswagen's shares are the disappointing third-quarter results. Earnings per share plummeted from 7.76 euros in the previous year to 2.42 euros, while revenue saw a slight decrease to 78.48 billion euros. Analysts project earnings per share of 23.26 euros for the full year 2024. The automotive sector's mood is further dampened by looming political factors, particularly the threat of import tariffs in the United States, which could significantly impact Volkswagen as a major German car manufacturer.