Volkswagen stock: What is priced in here?

Last Updated: 19. Januar 2024By

The Volkswagen share has started the new trading year rather weakly after a good final quarter and is currently trading at around 108 euros (as of January 19, 2024, around 9 a.m.). The stock has been in a downward trend for the last three years – Volkswagen desperately needs good news.

In this regard, things have recently been looking quite good for the world’s second largest car manufacturer after Toyota. The sales figures for the 2023 fiscal year are solid and the cost-cutting program is also taking shape. The challenges remain great, but perhaps the VW share will soon be ready for a comeback.

Volkswagen with decent sales figures Worldwide, the Volkswagen Group sold 9.24 million vehicles in 2023, an increase of around 12 percent compared to the previous year. Although 2022 was also an extremely difficult year due to supply chain problems, VW can be satisfied with the development, with slight growth even in the fiercely competitive Chinese market.

Within the EU, both Volkswagen as a single brand with around 1.15 million vehicles sold and the VW Group with around 2.75 million cars continue to be the market leader in 2023.

In Germany, the news also caused a stir that VW has surpassed its competitor Tesla in terms of sales of electric models. With around 70,600 electric cars sold, VW has sold almost 12 percent more than in 2022. Across the group, it was almost 148,000 electric cars.

The cost-cutting program aims to improve margins The ambitious cost-cutting program is slowly taking concrete shape. After negotiations with the works council, Volkswagen announced in December that it wants to save almost 10 billion euros in costs by the end of 2026.

This sum is expected to be achieved through cost-cutting measures in personnel (probably also with job cuts), savings in investments (such as at the „Campus Sandkamp“ development center), or lower salaries for managers and fewer bonuses.

Volkswagen share: The news is getting better – is that enough? In recent years, the Volkswagen Group has been confronted with a whole series of problems: Some criticized that the electric revolution was missed – Tesla and the Chinese manufacturers are several steps ahead. The difficulties with the software were also a recurring topic.

These and other challenges have not disappeared in 2024. Nevertheless, it seems that many bad news is already priced into the VW share price. For investors, it is still advisable to remain skeptical due to the challenges – but without underestimating the potential of the Volkswagen share. It is not without reason that many analysts currently see buying opportunities at VW after the stock performance in recent years.