Bernstein: Volkswagen's capacity reduction is attracting attention.

Analysts at Bernstein wrote that Volkswagen expects little to no growth in sales by 2030, so they plan to reduce manufacturing capacity, which could attract the attention of investors. Volkswagen will reduce the global group's capacity from 10 million vehicles to 9 million vehicles. The bank stated that this German car manufacturer's first-quarter revenue and EBIT did not meet the average expectations of Visible Alpha, but the performance of free cash flow brought positive surprises. The company had warned that it would incur a cost for discontinuing the production of ID.4 in the United States, and this cost has now been quantified as a negative factor of 500 million euros for the quarter. The bank added that after achieving a profit margin of 3.3% in the first quarter, significant sequential improvements are needed to achieve the expected target of 4%-5.5% by 2026. The stock price rose by 0.2%.