UBS has given Volkswagen shares a "Sell" rating and set a target price of 75 euros.

Analyst Patrick Hummel is skeptical about the market's response to the recent job cut agreement.

The deal is expected to result in over EUR 4 billion in medium-term cost savings, with EUR 1.5 billion coming from reduced wage costs.

Volkswagen plans to reduce its workforce by 35,000 jobs by 2030, but this will be on a voluntary basis.

Hummel believes that the timeline for achieving these savings is unclear, which makes it less likely for Volkswagen to reach its core brand margin target of 6.5 percent by 2026.

He also points out that the final agreement does not include the previously proposed ten percent wage cut by management, but instead only includes a wage freeze until 2027.