Porsche SE expects to write down its stake in Volkswagen by up to 40 per cent, as the uncertainty over potential plant closures and strikes forced Europe’s largest carmaker to withhold its annual financial plan. The Porsche-Piëch family’s holding company on Friday said it expected to write down the value of its stake in VW by between €7bn and €20bn, as the lack of financial data from the company meant it had to rely on analyst expectations.
The announcement of the anticipated writedown comes as VW prepares to enter the fifth round of negotiations with union IG Metall on Monday, amid a stand-off with workers over plans to close some German factories and lay off tens of thousands of workers. IG Metall and VW’s powerful works council have fiercely resisted the restructuring plans, which executives have argued are necessary due to a structural decline in European sales of cars.