Volkswagen Group plans to invest 160 billion euros ($186 billion) through 2030, its CEO Oliver Blume said, reflecting belt-tightening as Europe's top automakers faces a major crisis in its two key markets, China and the United States.
Volkswagen made a 1.3-billion-euro ($1.52 billion) operating loss in the third quarter, hit by billions of euros in costs from U.S. tariffs and a costly strategy reversal on electric vehicles at its subsidiary Porsche , the company said on Thursday.
Workers at a Volkswagen plant in Tennessee voted to authorize a strike, the United Auto Workers union said Wednesday evening, paving the way for a potential walkout at the Chattanooga facility.
Porsche SE , Volkswagen's biggest shareholder, is considering investing in the carmaker's Everllence diesel engine division that has been put up for sale, the Financial Times reported, citing people familiar with the matter.
Production at Volkswagen's main plant will proceed as planned next work week despite the risk of microchip shortages from a China-Netherlands stand-off over car industry contractor Nexperia, a person familiar with the matter told Reuters on Thursday.
Volkswagen is preparing to suspend production of major models, including the Golf at its Wolfsburg plant, due to shortages in semiconductor supplies, Bild reported on Tuesday, citing sources in the supplier industry.
Volkswagen is reiterated as a Buy due to attractive valuation and turnaround potential despite recent stock declines and macro headwinds. VW faces challenges from weak EV demand, Chinese competition, US tariffs, and higher input costs, but is undergoing cost-controlling initiatives to improve margins. Rate cuts and economic recovery could be significant catalysts for VW, though ongoing tariff uncertainty and global competition add risk and near-term volatility.
Shares in Volkswagen were trading 1.2% higher after markets opened on Tuesday, as the German automaker appeared to reassure investors over headwinds from tariffs and weakness in its luxury brands before releasing third-quarter results.
Volkswagen Group reported a 1% increase in third-quarter global deliveries on Friday as new models helped sales in Western Europe.
VW welcomed the union last year and now faces a costly work stoppage.
Volkswagen completed a full margin reset following P911's profit warning, incorporating the impact of higher tariffs and Traton's latest guidance cut. Volkswagen cut its Fiscal Year 2025 EBIT margin outlook to 2–3%, but DPS will be supported by excluding P911 impairment. Near-term EPS is depressed at €6.4, but we are looking at a 2026 recovery case.
Volkswagen CEO Oliver Blume tells CNBC's Annette Weisbach that the group hopes major investments into the American market will help it negotiate with the U.S. government.