Toronto, Ontario — This weekly Tuesday Ticker sees both company expansions and cuts as Volkswagen may reportedly book up to four billion euros in provisions for planned capacity cuts; while Hyundai announces plans to greatly expand its electric vehicle lineup.
Historic cuts
Volkswagen may reportedly book up to four billion euros in provisions for planned capacity cuts as early as the fourth quarter, analysts at brokerage Jefferies reported after traveling with company executives in North America.
The automaker previously announced that it was considering shutting down plants in Germany for the first time in the company’s history.
According to Reuters, “the rationale to re-size Volkswagen’s namesake is not new but management’s sense of urgency and determination to tackle excess capacity and spending patterns both are,” said Jefferies analysts.
“Three days on the road in North America with management gave us conviction that there is no plan B that would rule out capacity reduction,” analysts further commented.
While Volkswagen declined to comment to Reuters, last week, the automaker terminated a long-standing job security scheme for six of its German plants.
As a result of this decision, Jefferies speculated that said charges could be around 2.5 billion to three billion euros and as high as four billion for assuming separation costs of two annual salaries per worker and “including other closure costs” not otherwise specified.
As of 10:00 a.m. ET on Monday, Volkswagen stock traded at $137.72 CAD, down 1.41 percent year-to-date.
Hopes for hybrid
During its recent 2024 CEO Day, Hyundai revealed that the automaker will continue moving forward with its “Hybrid Way” which includes doubling the number of hybrids in its current lineup by 2030.
With this, Hyundai will further add extended range electric vehicle (EREV) options while also continuing to expand its fully-electric options.
As a result, the automaker hopes to add seven more hybrids to the Hyundai lineup in the next few years, doubling the current available number.
The automaker also reportedly plans to add a total of 21 all-electric models by the end of the decade.
As of 10:00 a.m. ET on Monday, Hyundai traded at 243.93 CAD, up 2.16 percent year-to-date.
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