0951 GMT - Volkswagen's supervisory board approval of a new restructuring plan is a major surprise and represents a fundamental breakthrough for a company many investors had seen as "not fixable," Deutsche Bank analysts write. However, the agreement doesn't solve Volkswagen's challenges overnight, and execution remains key, the analysts say. Deutsche Bank thinks there has been very limited dilution of the board's core transformation targets, aside from a lack of definitive plans to simplify the group structure and close four German manufacturing plants. "Nonetheless, we continue to see it as unlikely that Volkswagen will still produce vehicles at these sites beyond the early 2030s and believe addressing Germany's structural cost disadvantage remains fundamental to any sustainable turnaround." Shares in the German automaker rise 5.5%.
Comments