Volkswagen Stock: Starting Gun for the Comeback?

Last Updated: 7. Dezember 2023By

Finally, there was some movement in the share price of the German car manufacturer Volkswagen – and that was an upward movement. The share price was mainly supported by a recently positive news flow. Let’s take a look at the latest news.

Massive savings measures are being planned. On the one hand, Volkswagen announced that it wants to complete the negotiations on the billion-dollar savings program this year, according to the works council, which is negotiating with VW.

One of the first savings measures was the cancellation of the planned new building of the development center „Campus Sandkamp“. Instead of investing 800 million in a new building, existing buildings will be renovated with investments of 450 million euros.

Overall, the savings program is intended to reduce the costs of the car manufacturer by almost 10 billion euros by 2026 and at the same time increase the sales return. This is not possible without job cuts. An immediate hiring freeze was imposed early.

Allegations of forced labor in China dispelled Another message that was well received in the market was that auditors commissioned by Volkswagen, according to their own statements, did not find any indications or evidence of forced labor of the employees in the controversial VW plant in the province of Xinjiang in China.

The working conditions there were to be investigated due to a suspicion of human rights violations.

Chances of recovery for the share price? The Volkswagen share price has been in a downtrend since March 2021. Now, however, the title seems to be entering a bottoming out phase.

The share price is trying to form a bottom. Positive impulses immediately triggered buyers. For the recent rise, only a few positive news were enough, after all the problems of the DAX company were largely priced in. Further good news should give VW a tailwind.

The share is by no means expensively valued, so the current level can be used cautiously to enter in order to set on the comeback in the long term. Despite the disastrous price, the title is also very attractive for dividend hunters.