Volkswagen Stock: Sales Slump Triggers Major Restructuring Plan

Volkswagen Group faces significant headwinds as global deliveries are expected to fall below the nine-million mark in 2024, following a concerning three percent decline in the first three quarters. The company's stock currently trades at €91.22, substantially below its 52-week high of €128.60, reflecting investor concerns about the automotive giant's performance. This downturn is particularly evident in key markets, with Germany experiencing a sharp 21.3% decrease in sales, while China and North America recorded declines of 10.9% and 13% respectively. While brands like Seat/Cupra, Skoda, and Lamborghini showed growth, the core VW brand, along with Audi and Porsche, continues to struggle with declining sales figures.

Strategic Response

In response to these challenges, Volkswagen has initiated a comprehensive restructuring program. The plan includes reducing technical capacity in German facilities by over 700,000 vehicles and implementing a socially responsible workforce reduction of approximately 35,000 positions by 2030. These measures aim to optimize cost structures and enhance plant utilization efficiency, ultimately strengthening the company's competitive position in the global automotive market.