Volkswagen Group News
5 articles
growth-positive
Volkswagen Plans to Borrow From German Schuldschein Debt Market
Volkswagen Financial Services AG is planning to return to the German Schuldschein debt market, which has both loan and bond features, four years after its last visit. HSBC has been assigned to help arrange the financing. The terms of the euro deal are tentative at this stage and the borrower is looking at maturities of three and four years. The deal size has not been disclosed, but proceeds will be used for general corporate purposes and refinancing. VW sold €600 million ($649 million) of 2-year Schuldschein notes in January 2020, and a similar-sized financing with the same tenor in 2018.
Investment
growth-negative
German Inflation at Lowest Since 2021 as Economy Struggles
Germanys inflation slowed significantly in October, more than expected, as the countrys economy struggles to grow. The price pressures are the weakest since June 2021, according to the statistics office. This supports the European Central Banks argument that a record bout of interest-rate increases is starting to show its effects. A sharp retreat is also expected in Italy and, to a lesser extent, in France and in the 20-nation euro zone. Meanwhile, companies like Lanxess AG and Volkswagen AG are making cuts and savings to boost profitability.
Layoffs
growth-positive
Stellantis Says U-Turn on China Will Help It Beat EV Rivals
Stellantis NV has acquired a $1.1 billion stake in Chinese electric vehicle (EV) maker Zhejiang Leapmotor Technologies Ltd. The deal will give Stellantis a 21% stake in Leapmotor and two board seats. It will also allow Stellantis to have a controlling stake in a joint venture that will enable it to build and sell some Leapmotor cars outside China. The acquisition is part of Stellantis strategy to offer more affordable EVs and gain a competitive edge in the market. The deal comes after Stellantis decision to end manufacturing in China.
AcquisitionExpand
Renault Drops on Sales Miss, Pursues IPO Plan in Poor Market
growth-negative
EU Escalates China Tensions With Probe to Ward Off Cheap EVs
The European Union (EU) is launching an investigation into Chinese subsidies for electric vehicles (EVs) to prevent a flood of cheap imports. The move could lead to potential tariffs and retaliation that could impact the bloc’s carmakers. The EU Commission President, Ursula von der Leyen, stated that the global market is overrun with cheap Chinese cars, which are kept artificially low by huge state subsidies, distorting the market. The investigation is the first step to counter rival state support for green technologies. The share of Chinese brands of EVs in the bloc was 8% last year, with an expectation to control 15% by 2025.
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