Volkswagen's parent company Porsche SE has announced substantial write-downs ranging from 7 to 20 billion euros on its VW holdings, alongside additional impairments of 1 to 2 billion euros related to its sports car subsidiary. This significant financial adjustment will push the group's 2024 results deeply into negative territory, marking a dramatic shift from the previously forecasted profit of 2.4 to 4.4 billion euros. Despite these substantial balance sheet adjustments, the company maintains its commitment to dividend payments for the 2024 fiscal year, emphasizing its fundamentally sound financial position.
Government Support Measures
In response to these challenges, the German federal government has stepped forward with supportive initiatives, notably extending short-time work provisions to 24 months. This measure aims to preserve employment stability across Volkswagen's operations while providing the automotive giant with additional flexibility to navigate its current restructuring phase. The company's management remains optimistic about securing sustainable solutions through partnership-based approaches, despite ongoing discussions about potential cost-cutting measures.
Ad
Volkswagen Stock: New Analysis - 15 DecemberFresh Volkswagen information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Read our updated Volkswagen analysis...