Volkswagen's ambitious price objective receives a boost, as indicated by DAS. The struggling auto stock finds renewed optimism.

Volkswagen Unveils New Transporter Amidst Industry Transformation and Cost-Cutting Measures

Volkswagen AG has found itself in the spotlight once again, as the German automobile giant unveiled its new generation of transporter, the "New Transporter," at the IAA Transportation trade fair in Hannover. The event, which opened on Monday for journalists and trade visitors, marked a significant moment for the company as it navigates the challenging landscape of the automotive industry.

The "New Transporter" will succeed the T6.1 model, which was discontinued at the end of June. Interestingly, unlike its predecessor, Volkswagen will not produce the new transporter itself. Instead, the vehicle has been developed in collaboration with Ford.

The unveiling comes at a time when Volkswagen is under pressure from the transformation process in the industry. The company has had to take drastic cost-cutting measures due to sales slumps in electric vehicles and internal combustion engines, as well as competition from China. These challenges have led to a significant decline in the value of Volkswagen's stock.

Since reaching over 245 euros in 2021, Volkswagen AG's stock has lost more than 60% of its value. However, Jefferies, a leading financial services firm, maintains a positive outlook for the company's stock. They consider Volkswagen a buy and have set a price target of 140 euros, representing an upside of around 52% from the current price of around 92 euros. Jefferies also maintains a "Buy" rating for Volkswagen AG with a target price of 125 euros.

The new presentation of the "New Transporter" has sparked a sense of determination surrounding Volkswagen's restructuring, according to Jefferies and analyst Philippe Houchois. The company has announced it will intensify its cost-cutting program, with job cuts and plant closures being considered as part of the measures.

Despite the challenges, there is a belief that Volkswagen will need to convince with innovative and up-to-date car models to maintain its position in the industry in the long run. The company's partnership with Ford on the "New Transporter" could be a step in the right direction, signaling a shift towards collaboration and innovation in the face of industry-wide changes.

It's important to note that both the managing editor, Mr. Frank Poepsel, and the CEO and majority shareholder of the publisher Boerse-Medien AG, Mr. Bernd Foertsch, have direct and indirect positions in Volkswagen Vz. This conflict of interest should be taken into consideration when interpreting news about the company.

Investors may find the current price of Volkswagen's stock attractive, given the potential for significant price increases as suggested by Jefferies. However, a turnaround for the company's stock is still not in sight, as it continues to navigate the complexities of the automotive industry's transformation.

The "New Transporter" is a testament to Volkswagen's resilience and its commitment to innovation. As the company moves forward, it will be interesting to see how it adapts to the changing landscape and whether it can regain its position as a leader in the industry.

Volkswagen's ambitious price objective receives a boost, as indicated by DAS. The struggling auto stock finds renewed optimism.