FRANKFURT (Reuters) – Volkswagen AG may put aside billions of euros in provisions for deliberate capability cuts as early because the fourth quarter, brokerage Jefferies wrote in a notice after accompanying the carmaker’s administration. .
Jefferies’ feedback got here after Volkswagen mentioned earlier this month it was contemplating closing a German manufacturing unit for the primary time in its historical past, a transfer geared toward chopping prices as competitors looms in Asia.
“The rationale for right-sizing Volkswagen’s namesake model is just not new, however administration’s sense of urgency and dedication to handle overcapacity and spending patterns is,” Jefferies analysts mentioned in a notice.
“Three days on the highway … administration satisfied us that there was no plan B that dominated out capability cuts,” Jeffries mentioned, including that the selections may price between 3.3 and 4.4 billion euros ($3.3-4.4 billion). USD) provision.
Volkswagen was not instantly obtainable for remark.
(1 USD = 0.9007 EUR)
