Volkswagen: Shares drop sharply; To cut up to 25,000 temp jobs -paper

(For your information only. This is not an investment advice.)

I have been been closely watching Volkswagen shares in the last two weeks.

On Oct. 16 the premium for Volkswagen put options was skyrocketing.

In the past five trading days the VW stock has lost over 42%.

Today’s closing price was € 229,00.

Analyst expectations:

Goldman Sachs Group Inc.: Volkswagen new target price € 90 (Before € 206)
17.10.2008; Source: News (c) finanzen.net.

UBS: Volkswagen sell; Volkswagen new target price € 130
20.10.2008; Source: News (c) finanzen.net.

Sal. Oppenheim jr. & Cie. KGaA: New Fair value € 90 (Before € 125)
22.10.2008; Source: News (c) finanzen.net.

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Volkswagen to cut up to 25,000 temp jobs -paper

FRANKFURT, Oct 23 (Reuters) – Volkswagen plans to cut a majority or all of its 25,000 temporary staff as a response to rapidly deteriorating conditions in the market, Germany’s Frankfurter Allgemeine Zeitung reported on Thursday.

“We cannot avoid hard cuts,” Chief Executive Martin Winterkorn was quoted by the paper as saying in front of 500 managers in the company’s hometown of Wolfsburg.


A spokesman for Volkswagen said no decision had yet been taken.

“Both statements are wrong,” he said, referring to the paper’s report that a majority or all 25,000 would go, without commenting further.

Temporary workers are a favoured instrument used by the industry to flexibly react to peaks and troughs in demand and sales are suffering as a result of the credit crisis sweeping through VW’s core European market.

BMW CEO Norbert Reithofer said in Paris early this month that he had already cut 4,000 temporary jobs by the end of August.

(Reporting by Christiaan Hetzner; editing by Elaine Hardcastle)
Thu Oct 23, 2008 1:38pm EDT

Source: Reuters

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