Volkswagen shares jump 7% after turnaround deal approved

• Volkswagen shares increased by approximately 7% in early Frankfurt trading.
• The supervisory board approved a major turnaround agreement for the automaker.
• The restructuring plan involves cutting around 50,000 jobs, totaling 100,000 across the group.
• The future of four German plants is under review.
• The agreement was described as a positive sign for the capital market, despite workforce cutbacks.

Shares in Volkswagen experienced a significant jump of approximately 7% in early Frankfurt trading on September 4th. This surge followed the supervisory board's late Thursday approval of a major turnaround agreement, described as the largest restructuring in the company's 89-year history.

The comprehensive plan includes a further 50,000 job cuts, bringing the total workforce reduction to 100,000. Additionally, the future utilization or potential closure of four of Volkswagen's German plants is now open for evaluation.

Moritz Kronenberger, representing Volkswagen shareholder Union Investment, commented that the agreement is a positive signal for the company and the capital market, acknowledging the severe impact on the workforce. He stated that the Executive Board now has no further excuses to implement the necessary changes.