Volkswagen: Large Cost Savings Promised Without Factory Closures, We Remain Skeptical on Execution

In line with expectations, no-moat Volkswagen’s agreement with labor will not result in factory closures in the company’s attempt to improve the competitiveness of the Volkswagen passenger cars, commercial vehicles, and group components divisions. This is the third unsuccessful attempt to structurally reduce capacity through plant closures in Volkswagen’s recent history.