Volkswagen shares are charging higher after the German automaker's supervisory board surprisingly approved CEO Oliver Blume's radical restructuring package-one that includes another 50,000 job cuts.
The approval comes just two months after the often-fractious supervisory board rejected the plan, triggering high-profile wrangling between Blume's team, the company's powerful union representatives and its state shareholders.
The package, designed in part to counter Trump's tariffs and fierce Chinese competition, was widely lauded by analysts Friday:
-- Citi: "This is a brave plan and a realistic decision for all concerned...given VW's German plant competitiveness and lack of global revenue opportunities, VW simply had no other choice."
-- Deutsche Bank: "Today's agreement does not solve Volkswagen's challenges overnight...However, it removes the perhaps single biggest investor concern: whether the company is still capable of making the difficult decisions required to address them."
-- Bank of America: "A major positive surprise." (Analysts at the bank added that Volkswagen "remains the cheapest listed auto stock globally.")
Go deeper on the high-stakes vote in our story:
Comments