Volkswagen's Supervisory Board Should Vote for Cost Cuts, Citi Says -- Market Talk

0845 GMT - The choice seems clear ahead of Volkswagen supervisory board's vote Friday on the next leg of the cost-cutting plan, Citi analysts write. Without further cost reductions, the German carmaker cannot defend its 26% EU market share, core brand margins will fade, free cash flow will disappear, and its debt rating could be reviewed, the bank says. That would mean the company having to cut spending sharply and close German factories anyway, the bank adds. Citi says it has supported Volkswagen since the appointment of Oliver Blume as CEO, sensing a willingness to do what needs to be done. "That remains the case." The bank retains its buy rating on the stock and 94 euro target price. Shares fall 2.5% to 72.25 euros. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

September 02, 2026 04:45 ET (08:45 GMT)