Volkswagen's Investment Write-Down

BERLIN (Reuters) – Top Volkswagen shareholder Porsche SE expects to write down 7 billion to 20 billion euros ($20.98 billion) on its investment. This reflects how VW's cost crisis has impacted investor confidence in the carmaker.

Porsche SE also anticipates an impairment of up to 2 billion euros on its investment in luxury carmaker Porsche AG, which is primarily owned by Volkswagen, based on analyst predictions for both companies.

Volkswagen AG, currently engaged in tense negotiations with unions regarding cost cuts at its German operations, has struggled to finalize its financial planning for the year. This situation has compelled Porsche SE to rely on analyst forecasts for its projections.

The investment vehicle, co-owned by the Porsche and Piech families, now expects its group result after tax in 2024 to be "significantly negative," retracting its previous forecast of 2.4 billion to 4.4 billion euros.

Despite this downturn, Porsche SE still plans to distribute a dividend for the financial year.

($1 = 0.9534 euros)