Volkswagen managers convicted A German court in Braunschweig has convicted four former Volkswagen $VOW3 (-0,11 %)-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 (-0,11 %) 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 (-1,57 %) 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 (-0,11 %) 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

VW reaches one million e-cars in Zwickau

In Zwickau, Saxony, Volkswagen has $VOW3 (-0,11 %) has reached the impressive mark of one million electric cars produced. Since November 2019, the car factory has focused entirely on the production of fully electric vehicles, making it a pioneering location within the VW Group. Almost every second electric vehicle registered by the company now comes from this modern production facility. However, despite this success, the Group has been forced to introduce cost-cutting measures as demand is falling short of expectations. This has already led to temporary contracts not being extended and the night shift in production being cut. In order to increase efficiency, Volkswagen is planning to streamline production lines and concentrate on two Audi models in future. In addition, the Zwickau site could expand into the circular economy sector, which is seen as a promising opportunity to develop a second mainstay and increase competitiveness. Head of the Works Council Uwe Kunstmann was optimistic about the future and the potential in this promising business area.

100 days of Trump: consequences for the economy

Donald Trump has now been president in the USA for 100 days and has issued numerous decrees in this short period of time that have already had a noticeable impact on the economy. In particular, the introduction of tariffs and the associated triggering of a global tariff dispute are leaving their mark. Americans are feeling the consequences of the political decisions directly in their wallets, and there are fears that Trump's administration could leave long-term damage in the global economy. The combination of tariffs, a creeping economic slowdown and rising inflation represents an immense challenge for many companies. The long-term effects of his policies are still uncertain, but discussions about the potential impact on the global economy are already in full swing. Companies and analysts are keeping a close eye on how the economic situation will develop, while uncertainty continues to loom large.

Sources:

https://www.n-tv.de/wirtschaft/VW-baut-in-Zwickau-eine-Million-E-Autos-article25738718.html

https://www.n-tv.de/mediathek/videos/wirtschaft/100-Tage-Trump-Das-sind-die-Folgen-fuer-die-Wirtschaft-article25733629.html

VW reaches e-car milestone in Zwickau

Volkswagen $VOW3 (-0,11 %) has reached an impressive milestone at its Zwickau factory: the millionth electric car has been produced. Since November 2019, the plant has focused exclusively on all-electric vehicles. However, despite this impressive figure, the Group is facing challenges. Demand for e-cars is falling short of expectations, forcing VW to introduce a cost-cutting program. In future, only Audi models are to be manufactured in Zwickau. At the same time, the site is considering establishing a new business segment in the circular economy. This could help to secure competitiveness and attract new investment. The head of the Works Council emphasizes the strong performance of the workforce, but stresses the need to future-proof the site in order to remain successful in the coming years.

Meta surprises with 35 percent jump in profits

In the USA, the Facebook parent company Meta $META (+0,56 %) recorded an impressive 35 percent jump in profits in the first quarter. This increase is primarily due to growing advertising revenue. The company's AI-supported applications are extremely popular and are now used by almost one billion users every month. In order to remain competitive in the technology of the future, Meta's CFO plans to increase investment in data centers. Despite concerns about rising costs, analysts see the positive developments in advertising revenue as encouraging. The share price rose by almost four percent in after-hours trading. While Meta is talking about an impressive turnover of 42.31 billion dollars this quarter, the company is also facing regulatory challenges, including a US antitrust case and a fine of 200 million euros from the EU.

Sources:

https://www.n-tv.de/wirtschaft/VW-baut-in-Zwickau-eine-Million-E-Autos-article25738718.html

https://www.n-tv.de/wirtschaft/Meta-ueberrascht-mit-35-Prozent-Gewinnsprung-article25739328.html

The British food delivery service Deliveroo $ROO (-0,48 %) has officially confirmed that a takeover bid from US competitor DoorDash $DASH (+1,68 %) is on the table. This rumor had been floating around since last year, when earlier talks about a potential purchase stalled due to differing views on the company's valuation. Negotiations were broken off in May 2022, but the current offer could breathe new life into the discussions. A merger between these two heavyweights in the food delivery industry could not only shake up market shares, but also set new standards in the delivery services industry. The question remains as to how the two companies will react to their previous differences and whether they can now develop a common vision for the future.

In the USA, Volkswagen $VOW3 (-0,11 %)-CEO Oliver Blume caused a stir by questioning the planned end of new combustion cars in 2035. In a revealing interview, Blume expressed his approval of a proposal from the EU Commission that envisages a three-year compensation mechanism for the CO₂ fleet targets from 2025 to 2027. This concept could give manufacturers more leeway to achieve their CO₂ targets without losing valuable savings. Blume emphasized that politicians urgently need to provide more support in order to really master the challenges associated with the upcoming milestones. Given the changing framework conditions in the automotive industry and the focus on sustainability, how these discussions develop and what role the company will play in them could be crucial for Volkswagen.

Sources:

https://www.spiegel.de/wirtschaft/unternehmen/deliveroo-bestaetigt-uebernahmeangebot-von-doordash-a-593890ba-05f9-4818-81f0-127be36898d5

https://www.spiegel.de/wirtschaft/unternehmen/vw-chef-oliver-blume-stellt-aus-fuer-neue-verbrennerautos-im-jahr-2035-infrage-a-93f98987-a454-4d80-9722-37009fd5aef8

Tariffs in the USA weigh on Volkswagen

A report in the "Wall Street Journal" shows that Volkswagen has $VOW3 (-0,11 %) has temporarily halted deliveries of vehicles from its Mexican plant in Puebla. These vehicles, which are transported to the USA by rail, are now on hold. Ship imports from Europe will also have to wait, as the cars are being held back in the ports until the customs situation eases. Fortunately, vehicles that arrived in the USA before the tariffs came into force will be spared the new charges. Volkswagen plans to draw attention to the new car tariffs in its US car dealerships. The price tags will refer to a possible "import surcharge" that could apply to vehicles affected by the 25 percent tariff. Details on the amount of the surcharge and when it will come into force are not yet known. However, the uncertainty surrounding the tariffs is causing anxious faces among buyers and could affect sales.

Gold price rises to record high, dollar under pressure

The uncertainty surrounding the new tariffs has caused movement on the financial markets. Investors are looking for security and this has led to an increase in demand for gold. The price of gold reached a record high, showing that many investors are turning to tried and tested assets as a hedge. The prices of government bonds, such as those of Germany, are also on the rise. The euro continued to gain against the dollar, rising to almost 1.10 US dollars. In contrast, the dollar index lost 0.8% at its peak and fell to 102.9840 points - its lowest level since mid-October 2024. But it is not just the dollar that is coming under pressure, commodity prices are too. North Sea Brent crude oil and US light oil WTI fell by around 2.5 per cent each. In addition, prices for industrial metals such as tin, aluminum, copper and nickel fell by up to three percent. Commodity strategist Vivek Dhar from the Commonwealth Bank of Australia makes it clear that demand for oil is particularly dependent on the emerging markets, where some of the tariffs are particularly high. Developments on the markets show how strongly geopolitical factors influence the economy.

Sources:

https://www.spiegel.de/wirtschaft/zoelle-in-den-usa-deutsche-wirtschaft-erwartet-massive-belastung-a-d2903be7-ce5f-48e7-83f3-ccf6603c463b

https://www.spiegel.de/wirtschaft/donald-trump-und-die-zoelle-dollar-bricht-ein-gold-auf-rekordkurs-dax-unter-druck-a-ee9fa4d7-95e6-4ead-ac17-4636f022587a