Volkswagen Stock: Management Pay Cuts Signal Major Cost Savings

Volkswagen AG is implementing extensive cost-cutting measures, with management compensation becoming a significant focus of the company's efficiency drive. The automotive giant's leadership team will contribute over 300 million euros through reductions in variable compensation and special payments by 2030, as part of a comprehensive savings program targeting annual cost reductions of 4 billion euros. This initiative includes plans to reduce labor costs by 1.5 billion euros and involves a workforce reduction of 35,000 positions in Germany, with 29,000 of these cuts concentrated in Lower Saxony. The company emphasizes that these reductions will be achieved without forced layoffs, demonstrating a strategic approach to organizational restructuring.

Market Performance and Outlook

The company's stock has recently experienced downward pressure, trading at 89.28 euros, significantly below its 52-week high of 128.60 euros. Despite these challenges, market analysts maintain a cautiously optimistic outlook, projecting a median target price of 110.20 euros. Financial forecasts indicate an expected earnings per share of 22.32 euros for the current fiscal year, with anticipated dividends of 6.41 euros per share.