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Volkswagen and IG Metall have reached a significant agreement to cut over 35,000 jobs by 2030, ensuring that no sites will be closed down. This deal marks a historic negotiation milestone amid ongoing discussions about the influence of EU regulations on national laws.
IG Metall has initiated nationwide warning strikes at Volkswagen, with around 66,000 employees participating to protest against proposed pay cuts and potential plant closures. The union demands job security and a halt to cost-cutting measures, threatening further escalation if negotiations do not improve. Despite the strikes, VW reported limited production impact, but experts warn that prolonged disputes could harm the company's reputation.
Volkswagen's preference shares have shown a recovery, gaining 6.5% in December after hitting a 14-year low of EUR 78.86 at the end of November. The shares closed at EUR 85.96, marking the fifth consecutive positive trading day. Key resistance levels to watch include the 50-day line at EUR 87.01 and the July downtrend line at EUR 90. A drop below EUR 84.92 could signal further declines towards EUR 80 or lower.
Volkswagen's preference shares have seen a recovery, gaining 6.5% in December after hitting a 14-year low of EUR 78.86 at the end of November. The shares closed at EUR 85.96, marking five consecutive days of gains, with potential resistance levels at EUR 87.01 and EUR 90. A decline below EUR 84.92 could signal further setbacks towards EUR 80 or lower.
The bankruptcy of Swedish battery manufacturer Northvolt has left Swiss investors facing significant losses, with Goldman Sachs writing off $896 million in shares across four private equity funds. Stefan Bollinger, set to become CEO of Julius Baer, promoted these funds to wealthy clients, despite earlier optimistic forecasts. Northvolt's collapse marks a major setback for the European industry, having raised over $13 billion since its inception in 2016.
Volkswagen AG will continue its cost-cutting negotiations with union representatives next week, as both sides seek to enhance the automaker's competitiveness. The fifth round of discussions is scheduled to begin on December 16, according to Arne Meiswinkel, the lead negotiator for management.
Porsche Automobil Holding SE, which owns 53.3% of Volkswagen AG, has been downgraded by UBS from Neutral to Sell. The holding company oversees a diverse portfolio, including brands like Audi, Bentley, and Lamborghini, and also engages in financial services and mobility solutions development.
Porsche Automobil Holding SE, which owns 53.3% of Volkswagen AG, has been downgraded to sell by UBS. The holding company oversees a diverse portfolio, including brands like Audi, Bentley, and Lamborghini, and also holds stakes in various mobility and printing solution companies.
UBS has downgraded Porsche from Neutral to Sell, reducing its price target from €42 to €32, citing concerns over Volkswagen's performance, of which Porsche holds a 31.9% stake. The firm highlights ongoing execution issues, declining sales in China, and insufficient cost management as factors hindering Porsche's margin recovery.
UBS has downgraded Porsche from Neutral to Sell, reducing its price target from €42 to €32. This decision is influenced by a lowered target for Volkswagen, in which Porsche SE holds a 31.9% stake. UBS cites ongoing execution issues, declining volume in China, and a lack of cost discipline as factors hindering Porsche's margin recovery.
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