Volkswagen Stock: Labor Talks Strain as Costs Mount

Volkswagen finds itself at a critical juncture as negotiations with labor representatives enter a decisive phase in Hannover. The automotive giant is pushing for substantial cost reductions, including a 10% wage cut and the elimination of various benefits, while facing strong resistance from employee representatives who demand job security for approximately 130,000 workers across three federal states. The atmosphere during recent discussions has been described as tentatively constructive, though significant gaps remain between the opposing positions. Previous warning strikes have already mobilized around 100,000 employees, highlighting the growing tension within the organization.

Financial Outlook Deteriorates

The situation has been further complicated by Porsche SE's downward revision of its financial forecast, projecting extraordinary write-downs between 7 and 20 billion euros for Volkswagen, along with additional depreciation of up to 2 billion euros for Porsche AG. This development signals deeper financial challenges for the automotive group, with Porsche SE now anticipating significant after-tax losses. The ongoing cost-saving negotiations have also forced a delay in Volkswagen's planning round, making it increasingly difficult to assess the full financial impact of these developments.