Volkswagen's crisis means that the holding company that owns the car brand is writing down the value of its investment by 150 billion Danish kroner.
The main shareholder of the Volkswagen Group, Porsche SE, is forced to lower its expectations for the car business. Instead of a significant billion-dollar profit, the billions will be counted in losses.
This is reported by several German media outlets, including Automobilwoche .
– The overall result after tax for the 2024 financial year will be significantly negative, says a statement from Porsche SE.
Specifically, several analysts expect that Porsche SE, the founding family's holding company, will be forced to write down the value of the VW share by 20 billion euros, equivalent to 150 billion Danish kroner.
At the same time, it is reported that the car brand Porsche AG will be worth 2 billion euros on paper, equivalent to just under 15 billion Danish kroner, before the year is over.
Yet Porsche SE writes that it expects to pay 'a dividend' to its shareholders. The fact that both Porsche and Volkswagen are becoming less valuable is a direct consequence of the conflict between the VW Group's management and the employees at the factories in Germany.
Despite protests and strikes, management is adamant that more factories in Germany will be closed. If that happens, it will be the first time VW has ever closed factories in Germany. The brand's CEO Thomas Schäfer also does not rule out that layoffs may be necessary.
However, Thomas Schäfer himself would like to say that more support for electric cars is necessary. At least if cheaper electric cars are to be built. He would also like to put a number of years on how long VW needs state support. Read more about it here .
However, the management, of which Thomas Schäfer is a part, has also received massive criticism for its handling of the acute crisis in which the brand is currently facing. Shortly before it was announced that Volkswagen would save billions on operations, it emerged that the management spent millions on a luxury trip to the Nordic countries.
