Volkswagen AG Is A Too-Big-To-Fail German Mess That Likely Will Be Fixed

Doron Levin
1.55K Followers
(7min)

Summary

  • Volkswagen faces a crisis, with management warning of potential challenges within two years due to declining sales and market competition.
  • The company plans to cut spending, adjust output, and possibly close plants, risking labor disputes and political backlash.
  • VW's investment in Rivian aims to bolster its struggling software and electrification efforts, indicating a willingness to take bold steps.
  • Despite current financial stability, VW's stock remains risky. Restructuring and technological upgrades are essential for a potential turnaround.
Volkswagen Autostadt parking lot towers

Volkswagen Autostadt parking lot towers near company headquarters in Wolfsburg, Germany

Pgiam/iStock Unreleased via Getty Images

Volkswagen AG (OTCPK:VWAGY) management couldn’t have been more clear earlier this month that the automaker is hurtling toward an abyss that threatens its dominant position in Europe and have already ended its leadership in China.

VW’s balance sheet is solid, so

This article was written by

1.55K Followers
I am a journalist based in Detroit, having spent almost my entire career writing about business and economic subjects for The Wall Street Journal, New York Times, Detroit Free Press and Bloomberg. I'm the author of two books and am an acknowledged expert on the world automotive industry.

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