VW Cost Cutting Pleases Investors, But Outlook Clouded By CO2, China | News World

Volkswagen has pleased investors with its belated attack on costs as it tries to rationalize its sprawling empire, but obstacles jeopardizing improved profits are growing.

Markets are weakening in Europe, getting more testing in China, electric vehicle sales are not performing as strongly as needed, while VW has a special problem; it is seen as the biggest laggard ahead of the strengthening of the EU’s anti-carbon dioxide rules next year and that will cost it much money.

Sales of sedans and SUVs in Europe are expected to slow to a growth of 4.6% in 2024 to 19.3 million, according to BMI, a Fitch Solutions company. In 2023, sales rose a robust 19.2%, as supply chain disruptions normalized allowing carmakers to catch up with a backlog.

“EU 2025 CO2 compliance could become a meaningful burden next year,” investment bank UBS said…