Volkswagen Stock: Wage Cuts Amid China Sales Slump

Volkswagen faces a critical juncture as it grapples with labor negotiations and market challenges in China. The automaker is seeking a 10% wage reduction for its core VW brand, a move strongly opposed by the works council. This proposal comes as the company confronts significant headwinds in the Chinese market, where its electric vehicle sales have plummeted by 20% in the first nine months of the year, contrasting sharply with the overall market growth of 21%. To counter this decline, Volkswagen plans to introduce a new sub-brand in China, with the first model already unveiled, aiming to revitalize its position in this crucial market by mid-2025.

Innovative Solutions Amid Stock Pressure

Despite these challenges, Volkswagen is making strides in technological innovation. The company's software subsidiary, Cariad, has partnered with TomTom to develop an advanced navigation solution for electric vehicles. This system, set to debut in Audi electric models, will monitor range throughout journeys and adjust routes as needed, potentially enhancing the company's competitiveness in the growing electric vehicle market. However, investor confidence remains shaky, with Volkswagen's stock dropping 2.1% to €83.98 on Thursday. Analysts maintain an optimistic outlook, projecting a median target price of €112.10, suggesting potential for recovery despite current market pressures.