Volkswagen shares skid after results
Volkswagen’s CEO says the company has to change into a ‘tech and mobility’ company. IGTV’s Angeline Ong takes a look at the auto giant’s results and investment plans to find out why VW’s shares are sliding.
VW shares slide
Volkswagen shares looking not so electrified this session. They are down some 3.3% in Frankfurt. The CFO says the company has to change into a tech and mobility company now. Volkswagen say that its earnings margin reached around 8%. This is at the upper end of its 2022 forecast. Plus, it also expects supply chain bottlenecks to ease in 2023. But, perhaps investors are looking more at the outlook and how much in terms of a transition Volkswagen and many other carmakers still have to go through until we get to a fully electrified future.
Investment
Volkswagen says it will invest 180 billion euros in the next five years towards this aim. So where is the salad dressing? Where is Volkswagen AG (Ord) spending all this money? Two-thirds of that huge amount will be spent on electrification, including making batteries, a key component, and digitalization in China. That spend is up from 56% in the previous five-year plan. Some traders out there have said that Volkswagen has been behind the 'electric' curve.
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