Why Investors Are Unhappy With VW's Turnaround Plans

Why Investors Are Unhappy With VW's Turnaround Plans

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Business, Social Studies, Architecture

University

Hard

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Volkswagen's recent strategy announcement left investors disappointed, as shares fell due to lack of significant gains. The company plans to increase its return on sales and expand its electric vehicle lineup by 2025, but faces financial challenges, including costs from the diesel scandal. VW aims to cut R&D spending, which raises concerns about its future tech advancements. Meanwhile, Ford faces issues with its F-150 not meeting CAFE standards, but is expected to resolve this by 2025. VW's CEO, Matthias Mueller, is working on a recovery plan involving 250 employees, marking a shift from previous management styles.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways does Volkswagen's current restructuring plan resemble past strategies of other automotive companies?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What impact has the emissions scandal had on Volkswagen's current operations and investor confidence?

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