Volkswagen Stock: China Woes and Labor Tensions Rattle Investors

Volkswagen AG faces significant challenges as its stock price tumbles amid a perfect storm of market pressures and internal conflicts. The German automaker's shares plummeted 2.4% to €83.72 on Thursday, approaching its 52-week low, reflecting investor concerns over the company's performance. In China, a crucial market for Volkswagen, electric vehicle sales have nosedived by 20% in the first nine months of the year, contrasting sharply with the overall market's 21% growth. In response, the company plans to launch a new sub-brand in China by mid-2025 to reinvigorate its position.

Labor Disputes Intensify Market Anxiety

Adding to the company's woes are ongoing wage negotiations that have sparked internal tensions. Volkswagen is pushing for a 10% wage cut for its core brand, a move strongly opposed by the works council. The labor representatives argue that personnel costs constitute only 17% of total expenses, while the IG Metall union demands a 7% wage increase. This internal strife could potentially impact productivity and further erode investor confidence, compounding the challenges faced by the automotive giant in an increasingly competitive global market.