Volkswagen: Investor Day Highlights Value Over Volume in Responsibility Shift to Brands for Results

We are maintaining our EUR 338 fair value estimate for the ordinary and preferred shares of Volkswagen after management held an investor day to present its new strategic plan to accelerate the transition to e-mobility and digitalization. The company says its steering model is based on profitable value creation over volume growth, lower fixed costs, and disciplined investment. The group executive board will set the financial targets for the brands. However, for the first time, the individual brands will be responsible for developing a performance program, with brand management teams’ compensation including incentives to achieve financial targets. We like that the brands will have more autonomy to execute strategy and more accountability for results.