VOLKSWAGEN CUTS ANOTHER 50,000 JOBS AND THE STOCK JUMPS 8%

🔴 Volkswagen is cutting another 50,000 jobs, and the stock went up 8%.

CNBC reports the supervisory board approved Future Plan 2030 on Thursday, a package of 12 initiatives that Volkswagen describes as the most strategically profound transformation in its 89-year history.

The headline number: around 50,000 positions cut, management roles included. That sits on top of 50,000 cuts already approved. Total reduction, 100,000 jobs.

The model portfolio shrinks by 50% by 2035. Four German plants with no secured production from 2031 to 2034 are being looked at for alternative uses.

📉 Why now. Volkswagen reported tariff expenses of 2.9 billion euros, or $3.4 billion, for full-year 2025. CEO Oliver Blume said in August that duties on vehicles from Europe had gone from 2.5% two years ago to 15%. His line: the cars did not get worse, the rules changed.

Then there is China. BYD and Geely have taken ground in EVs. Carmignac's Kevin Thozet told CNBC that Europe is importing not just Chinese cars but Chinese price deflation, and that Europe has an overcapacity problem of its own. "China has too many cars. Europe has too many factories. And both problems are colliding."

📈 The market read it as competence. VW topped the Stoxx 600 Friday, up 8%, though it remains down 21% this year. Deutsche Bank analysts called the unanimous approval a fundamental breakthrough and much better than feared, noting that virtually every investor they spoke to still viewed Volkswagen as "simply not fixable."

They also expect a halo effect: other German manufacturers following with cuts of their own.

Would you buy VW stock on this news?

#Volkswagen #Stocks #Tariffs #AutoIndustry #causeanuproar