The next one starts on Monday fifth round of talks between the Volkswagen management board and IG Metall trade unionists. Both sides are aiming to conclude a deal by Christmas, but have yet to overcome deep divisions over the course of action to reduce the operating costs of Europe’s largest carmaker. Trade unionists do not agree to the employment reductions proposed by the management and the unprecedented closure of factories in Germany.
Warning strikes had no effect
Twice this month, tens of thousands of VW employees have temporarily stopped working after… management rejected the union’s proposal, which included cutting dividend payments and cutting some bonuses.
If the negotiations planned for two days do not bring a breakthrough, at the end of the week the management board of IG Metall is ready to hold a vote that will decide whether 24-hour strikes will begin at VW factories in January.
VW owners expect to lose EUR 20 billion
Disorderly restructuring throws obstacles at the company’s accounting processes. On Friday, Volkswagen informed Porsche Automobil Holding SE that it no longer expects to complete corporate planning by the end of the year. This forces the holding company to use analysts’ assumptions to conduct impairment tests of its investment in a car manufacturer.
A year of Volkswagen and Porsche to forget. The market value of both companies fell / Bloomberg
Porsche SE announced that assumes a loss of non-cash goodwill ranging from EUR 7 billion to as much as EUR 20 billion in the book value of its investment in Volkswagen. The holding company is majority owned by the billionaire Porsche-Piëch family.
Porsche SE said the write-downs would not affect its cash or VW’s or Porsche’s financial forecasts for this year. The management board of the holding company still expects to pay dividends for the 2024 financial year.
