Volkswagen Vz - How deep does it go?

Company description

Volkswagen is one of the largest automakers in the world. Its passenger car brands include Volkswagen, Audi, Bentley, Lamborghini, Porsche, SEAT and Skoda. Its commercial vehicle brands include MAN, Navistar, Scania and Volkswagen. The company's financial services group provides dealer financing to support floor plans, consumer car financing, vehicle leasing, banking and other financial services. In 2022, Europe was Volkswagen's largest market for light vehicles, accounting for 41% of the total, followed by China at 37% and the rest of the world at 22%

Fundamental data

Fundamentally, the company, like all European companies at the moment, has a real problem. Weak economic demand, high interest rates and competitive pressure from Asia are depressing the prices of automobile manufacturers. Volkswagen is currently facing many problems. In addition to severance pay programs, which can certainly be expanded, the company is planning to probably close a plant in Brussels belonging to the VW subsidiary Audi. The VW Group is thus reacting to the high costs and low demand.

Chart technical outlook

Chart-wise, it is also weak, how could it be otherwise. After the last downward movement, which arose from a bearish flag, the share price has been forming a low base formation since mid-June. The share price has been trading at the support area of EUR 104.50 for almost a month. A downward breakout should release further potential and thus reignite the downward trend in securities. I have defined a target zone at around EUR 90.50.

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