Vodafone $VOD (+2,06 %) has raised prices for fixed-line internet by €5 per month in 2023, affecting around 10 million current contracts. However, this decision has caused quite a stir. Consumer advocates see the increase as unlawful and have filed a lawsuit with the Hamm Higher Regional Court on behalf of the Federation of German Consumer Organizations (VZBV). Ramona Pop, a member of the VZBV board, emphasizes that many customers would not go to court themselves to reclaim these 5 euros. This is why the class action lawsuit is so important: it is intended to help the customers affected to get back the amounts they have paid unlawfully if the lawsuit is successful. The association is demanding that Vodafone refund the price difference to all affected users. This shows how important it is to stand up for consumer rights and hold companies accountable.

In the USA, Volkswagen had $VOW3 (+1 %) had less luck with its legal dispute regarding data protection. Although the company won a partial victory in a lawsuit against the data protection reprimand by the Data Protection Commissioner of Lower Saxony, the central reprimand remains in place. This could result in VW receiving a substantial fine. Interestingly, it was a signature error by the public prosecutor that may have saved the company millions of euros. Although the judgment is not yet final, VW has the option of lodging an appeal with the Higher Administrative Court. However, the effects on the fine seem certain in the current situation, as the reprimand is still valid. This case shows once again how important correct procedures are in a legal context and how easily companies can profit from formal errors.

Sources:

https://www.spiegel.de/wirtschaft/vodafone-mehr-als-100-000-kunden-beteiligen-sich-an-sammelklage-gegen-preiserhoehung-a-b89b9ce4-3647-43ad-bcca-16e72c5ccf62

https://www.spiegel.de/wirtschaft/unternehmen/volkswagen-entgeht-millionenbusse-weil-staatsanwalt-unterschrift-vergass-a-ec5c2f9e-1693-4a80-93f8-be9500be096c

Tönnies loses takeover of Vion abattoirs The Premium Food Group is disappointed by the decision of the Cartel Office, which has prohibited the takeover of Vion abattoirs. In an official statement, the company describes the ruling as a bitter setback for farmers in southern Germany, who had hoped for a clear decision for the future. The Cartel Office based its decision on Vion's market leadership in the area of cattle slaughtering in this region. Vion had announced last year that it would withdraw from Germany and put its sites up for sale. While some merger plans have already been approved, the uncertainty for farmers and the entire industry remains palpable. The situation illustrates how important competitive structures are for agriculture and how much market conditions can influence the players.

Volkswagen escapes millions in fines due to forgotten signature In Germany, Volkswagen $VOW3 (+1 %) has won a partial victory, but the central data protection complaint remains and could still lead to a possible fine. VW's appeal against this reprimand was not decided as hoped, as the administrative court ruled on the matter. Although two of five warnings issued by the Data Protection Commissioner of Lower Saxony in 2023 were overturned, the decisive reprimand for insufficient data protection information remains in place. Although the ruling is not yet legally binding, VW has the option of lodging an appeal with the Higher Administrative Court. However, the effects on the impending fine can no longer be influenced by the ruling, which increases the uncertainty for the company. VW must now carefully consider how it will deal with the remaining legal challenges and what measures are required to improve its data protection practices.

Sources:

https://www.spiegel.de/wirtschaft/unternehmen/toennies-kartellamt-verbietet-uebernahme-von-vion-schlachthoefen-a-00d87a13-e0e2-427d-bac7-545a664b2dc6

https://www.spiegel.de/wirtschaft/unternehmen/volkswagen-entgeht-millionenbusse-weil-staatsanwalt-unterschrift-vergass-a-ec5c2f9e-1693-4a80-93f8-be9500be096c

Industry in Germany: 100,000 jobs cut

German industry is facing a profound upheaval. In just one year, around 100,000 jobs have been lost, representing a massive decline in the sector. The automotive industry in particular, which includes Mercedes $MBG (+0,6 %) is severely affected. Around 45,400 employees have lost their jobs here. There are numerous factors behind this trend: technological innovations, the shift towards sustainable mobility concepts and global economic challenges that are increasing the pressure on the country's industrial base. This development could not only jeopardize Germany's economic stability, but also have a lasting impact on social structures in the affected regions. The question remains as to how politicians and companies will react to this change and whether new jobs can be created in promising sectors.

Northvolt's decline: a premature end

In recent years, Northvolt, a start-up specializing in cell manufacturing, has attracted a lot of attention. With over 15 billion dollars raised in a single financing round, the company was considered the largest of its kind. European politicians were keen to promote cell production on the continent in order to reduce dependence on Asian manufacturers. Despite support from well-known investors such as Volkswagen $VOW3 (+1 %) and Goldman Sachs $GS (+1 %)who were betting on a revolutionary future, the company went bankrupt two years after a valuation of 12 billion dollars. This rapid decline not only calls Northvolt's future into question, but also highlights the challenges facing innovative companies today. The lesson to be learned here concerns the risks and uncertainties in a rapidly changing economic environment.

Sources:

https://www.spiegel.de/wirtschaft/unternehmen/industrie-in-deutschland-100-000-jobs-in-einem-jahr-abgebaut-a-e60643f6-53f6-4abe-a1d0-085678c58803

https://www.manager-magazin.de/unternehmen/northvolts-niedergang-warum-europas-vorzeige-start-up-am-ende-scheiterte-a-c335f293-934f-403d-8942-9b0fc89fa82f

Wall Street shows strength despite tariff dispute

Wall Street remains unimpressed by the current tariff disputes between China and the USA. While investors continue to invest in technology stocks, the Nasdaq Composite showed a positive development on Tuesday and is thus back in positive territory since the beginning of the year. The latest tariff announcements by US President Donald Trump have not caused any additional unrest. Nevertheless, the question remains as to whether a final trade agreement can be reached between the two countries. Market strategist Michael Brown from Pepperstone emphasizes that a phone call between Trump and Xi Jinping may be necessary to move the negotiations forward.

The Dow Jones index closed up 0.5 percent at 42,520 points. The S&P 500 and the Nasdaq Composite also rose. Price gainers predominated on the Nyse, indicating a positive mood. Despite this encouraging development, however, there are negative forecasts from the OECD, which has lowered global economic growth due to trade barriers and uncertainties. This is also reflected in the current US economic data, which is sending mixed signals. While incoming orders in industry fell, the number of job vacancies rose.

Another point is the development on the bond market, where yields remained stable. The dollar recovered from a six-week low, putting pressure on the gold price, while oil prices have risen, despite the uncertain economic outlook.

Technology stocks show strong performance

Shares in the tech sector are particularly in demand. Nvidia gained 2.8 percent, while Super Micro Computer rose 4.8 percent. Micron Technology improved by 4.2 percent after the company presented a new chip for AI applications. Walt Disney was also up 0.6 percent, despite global layoffs to improve efficiency. Dollar General impressed with a gain of 15.9 percent after a positive forecast, while MoonLake Immunotherapeutics rose 18 percent after takeover talks with Merck & Co. were reported.

VW focuses on electromobility in China

Volkswagen $VOW3 (+1 %) recently presented three new ID models for the Chinese market that drive innovative concepts in electromobility. These vehicles combine a fuel-powered generator with a battery, which enables an impressive range of over 1,000 kilometers. In battery mode, the new models achieve a range of 300 kilometers, while the generator charges the battery while driving and enables an additional 700 kilometers. With these new models, Volkswagen aims to strengthen its position in the growing Chinese electric market and tackle the challenges of the energy transition. The company is focusing on sustainable mobility and innovative approaches to meet the needs of Chinese consumers.

Sources:

https://www.n-tv.de/wirtschaft/Gewinne-trotz-Zollstreitigkeiten-Tech-Titel-legen-zu-article25811150.html

https://www.n-tv.de/mediathek/bilderserien/auto/VW-zeigt-drei-neue-ID-Modelle-fuer-China-article25720130.html

Volkswagen managers convicted A German court in Braunschweig has convicted four former Volkswagen $VOW3 (+1 %)-managers for fraud. The sentences are yet another big chunk in the history of the emissions scandal, which began in 2015 when the US Environmental Protection Agency (EPA) uncovered the first violations of emissions standards. The convicts are high-ranking executives: the former head of diesel development must serve four and a half years in prison, and the head of drive electronics was sentenced to two years and seven months. Two other ex-managers received suspended sentences of 15 and 10 months. The scandal has already cost Volkswagen over 33 billion euros in fines and compensation and casts a long shadow over the entire automotive industry. Former CEO Martin Winterkorn is absent from the hearings for health reasons, while proceedings are still pending against 31 other suspects. It remains to be seen how the legal disputes will develop.

Volvo Cars cuts 3,000 jobs The air is getting thin in Sweden: Swedish car manufacturer Volvo Cars is planning to cut 3,000 jobs in order to reduce costs and meet the challenges facing the industry. This tough decision is part of a comprehensive cost-cutting program as the automotive industry is under pressure due to trade conflicts and economic uncertainty. Around 1,200 employees in Sweden will be affected by the job cuts, while an additional 1,000 positions currently held by consultants will be eliminated. CEO Håkan Samuelsson describes the decisions as difficult but necessary to maintain the company's financial stability. The automotive industry is struggling with rising raw material costs and a declining European car market, which is further exacerbating the situation. With a total of 42,600 full-time employees worldwide, Volvo Cars is facing a crucial phase in which it must adapt to the changing market conditions.

Sources:

https://finance.yahoo.com/news/german-court-convicts-4-ex-135331698.html

https://finance.yahoo.com/news/volvo-cars-cutting-3-000-124250562.html

The VW diesel scandal remains a key issue in the automotive industry and has far-reaching consequences for the company. The latest verdict in the trial brings to light the legal and financial consequences of the manipulations. These verdicts are not only important for Volkswagen $VOW3 (+1 %) but also have an impact on the entire industry, as they could influence how similar scandals are handled in the future. The legal disputes, combined with massive financial burdens, represent a major challenge for VW. These problems will keep the company busy for a long time to come and it remains to be seen how the situation will develop.

In the USA, Volvo $VOLV A (+0,56 %) is facing a difficult phase and is planning to cut 3000 jobs worldwide. CEO Hakan Samuelsson emphasizes that the automotive industry is undergoing a profound upheaval that requires serious decisions. In order to meet the challenges of this new reality, costs must be structurally reduced. Weak figures were already presented in the first quarter, underlining the need for job cuts. The measures are aimed at saving a total of 18 billion Swedish kronor, which corresponds to around 1.7 billion euros. To implement these drastic measures, special costs of around 1.5 billion Swedish kronor, i.e. around 140 million euros, will initially be incurred in the second quarter, which underlines the seriousness of the situation.

Sources:

https://www.spiegel.de/wirtschaft/vw-dieselskandal-was-die-urteile-im-prozess-bedeuten-meinung-a-ec66f7cf-0fdb-4574-ba7c-d255a3a3da01

https://www.spiegel.de/wirtschaft/unternehmen/volvo-autohersteller-plant-abbau-von-3000-stellen-weltweit-a-5574501b-4d11-4aad-95d7-a97344471398

It's lower than in previous years, but oh well.

Every year the groundhog greets VW.

VW emissions scandal: defendants see themselves as victims

The trial surrounding the emissions manipulation at Volkswagen $VOW3 (+1 %) is drawing to a close and continues to cause a great deal of excitement. Three of the four accused managers and engineers are anxiously awaiting the upcoming verdict, which could see them receive prison sentences of between three and four years. In emotional statements, the defendants describe how the last almost ten years have shaped their lives. The trial at Braunschweig District Court, which lasted almost four years, has left its mark and is described by the defendants as exhausting. They emphasize that they do not share the view of the public prosecutor and see themselves more as victims.

The public prosecutor's office is convinced of the guilt of the accused and is calling for correspondingly harsh sentences, while the defense is pushing for acquittal. The debate about the crucial question of who knew about the machinations and when remains controversial. Engineers warn of the serious consequences of their actions, while superiors insist that existing problems were discussed, not illegal actions. Meanwhile, the trial of former CEO Martin Winterkorn has been severed for health reasons, adding further complexity to the proceedings. The defendants feel more like pawns in this scandal, which began in 2015.

European companies lagging behind

A storm is brewing in the USA and Asia: The big companies have overtaken the top European corporations in terms of both turnover and profit. A recent study by EY shows that European companies suffered a 1.1 percent drop in turnover, while US companies were able to increase their turnover by 4.5 percent. German companies were particularly affected, with turnover falling by 3.1 percent and profits by 8.5 percent.

Asian companies, on the other hand, were able to increase their operating profits by almost 20 percent, while the European market leaders recorded an average decline of 6.5 percent. The list of the 1000 companies with the highest turnover is dominated by the USA with 317 companies, followed by China and Japan. Germany is in fourth place with 43 companies. According to EY expert Jan Brorhilker, the situation for European companies is becoming increasingly serious and the challenges are growing, especially for traditional industries such as the automotive sector. While US tech companies are making record profits, European companies are facing financial burdens and uncertainties.

One positive exception is Deutsche Telekom, which is considered the most profitable company in Germany. On a global level, the oil company Saudi Aramco achieved an operating profit of 191 billion US dollars, further highlighting the high pressure on European companies.

Sources:

https://www.n-tv.de/wirtschaft/Angeklagte-im-VW-Abgasskandal-sehen-sich-als-Opfer-article25773204.html

https://www.n-tv.de/wirtschaft/Asiatische-und-US-Konzerne-haengen-die-deutschen-ab-article25775882.html