Moody's Downgrades Volkswagen's Outlook to Negative Amid Performance Concerns

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Oct 11, 2024

Moody's has downgraded Volkswagen's rating outlook from "Stable" to "Negative" due to deteriorating operational performance. The rating agency suggested that reversing this trend could be challenging for the European automaker.

Moody's highlighted several factors influencing Volkswagen's prospects, including sluggish global sales growth, increased pricing pressure, potential EU carbon emission fines, and additional restructuring costs. These factors are projected to weaken Volkswagen's operational performance through 2025.

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