FRANKFURT (Reuters) – Volkswagen (ETR:) could e-book billions of euros in provisions for deliberate capability cuts as early because the fourth quarter, brokerage Jefferies wrote in a notice after accompanying the carmaker’s administration.
The feedback by Jefferies come after Volkswagen earlier this month mentioned it was contemplating shutting vegetation in Germany for the primary time in its historical past, a transfer aimed toward bringing down prices as Asian competitors is closing in.
“The rationale to re-size VW’s namesake is not new but management’s sense of urgency and determination to tackle excess capacity and spending patterns both are,” Jefferies analysts mentioned in a notice.
“Three days on the road … with management gave us conviction that there is no plan B that would rule out capacity reduction,” Jefferies mentioned, including selections may result in provisions of three to 4 billion euros ($3.3-4.4 billion) already within the fourth quarter.
Volkswagen was not instantly out there for remark.
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