Fitch: Volkswagen’s Outlook to Positive from Stable image

Fitch ratings agency on Wednesday said it has revised Volkswagen’s Outlook to Positive from Stable.
Fitch considers Volkswagen’s business profile to be at the top end of the sector.

Volkswagen Group’s ratings are supported by an unparalleled product portfolio combining premium and large mainstream brands, broad geographical diversification, leading and increasing market shares and an unrivalled potential for cost savings and economies of scale, the ratings agency said in a statement.

It’s strong in Germany, of course, with 36 percent of the market. Its overall share is 23 percent in Western Europe, 14 percent in Eastern Europe, 19 percent in South America and 18 percent in China.

About the only weak spot is the United States, where it has a mere 3.5 percent, but with a new plant in Tennessee, the company is working hard to fix that.

The announcement only days after Volkswagen AG Tuesday tightened its grip on German truck maker and engineering firm MAN SE by lifting its voting stake above 75%, marking the next step towards forging a truck alliance with Sweden’s Scania AB.