Volkswagen plans to delist by the end of October its preference and ordinary shares from the London Stock Exchange due to low trading volume.
The German automaker said that the application for delisting its preference and ordinary shares has been filed to the Financial Conduct Authority.
“The trading volume is too low to justify the related administrative efforts,” Marco Dalan, a VW spokesman, said by telephone.
Volkswagen has been struggling to reduce costs in order to offset shrinking demand in Europe, where new-vehicle sales are expected to drop for the 20th consecutive year. The German automaker managed to pass through the economic crisis better than its rivals, mainly due to the fact that it has a large presence in the Chinese market and profits have been kept up by increased demand for the Audi and Porsche brands.
Earlier this month German magazine Manager Magazin published a report based on anonymous sources, according to which VW’s CFO Hans Dieter Poetsch has warned the automaker’s managers that the company might not be able to reach its financial targets due to higher than expected costs for the new modular assembly architecture.
“The suggestion that Volkswagen isn’t committed to its targets is false,” the Wolfsburg-based carmaker said in an e-mailed statement. “Volkswagen completely stands behind its statements about the future development of the company.”
by Ana Cezara Savin
) - Friday, September 27th, 2013 - filed under Industry
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