The core brand group of German carmaker Volkswagen plans to cut back management positions and consolidate the platform in a bid to save 1 billion euros ($1.2 billion), the Automobilwoche industry publication reported on Wednesday.
The company said its net cash flow was 1.64 billion euros ($1.92 billion) last year, beating its forecast of 1 billion to 1.5 billion euros and analysts' consensus of 1.01 billion euros.
The German truck manufacturer Traton Group reported a net cash flow of 1.643 billion euros ($1.92 billion) for 2025, declining from last year but beating analyst consensus estimates of 1.011 billion euros.
Volkswagen faces significant near-term risks from potential new US tariffs, prompting a reduction in my price target to €160/share. Tariffs have already caused a meaningful €1.5B impact, and further escalation could cut EPS growth estimates by 10-20%. Despite volatility, VOW3 remains fundamentally strong, conservatively leveraged, and offers over 20% annual upside at current valuations.
Volkswagen is rated BUY, with 25-35% upside potential, driven by cost-cutting, new model launches, and significant undervaluation versus fair value. Despite 2025 headwinds—US tariffs, China market share loss, and Porsche weakness—VWAGY's sales and revenues grew, signaling resilient consumer demand. Management targets EUR 1.5 billion in cost savings by 2026, new BEV/ICV launches in Europe and Ch...
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