I increased my Volkswagen position today by 41.5% at a price of €125.00
My main reasons range from cheap valuations (P/E of below 4, discount to book value >50%), good results in 2023 (esp. if adjusted for commodity hedging loss + strong return on sales of brand group), increased management trust and a macro 2024 which looks relatively stable.
I continue to be interested in expanding the position further. Main risk factors to understand better are the medium to long-term macro outlook, esp. when it comes to automotive prices as supply chains ease and competition ramps up. (Volkswagen predicts lower margins of 7-7.5% on a group level in 2024), furthermore, the likelihood of success of the Volkswagen new models 2024 offensive and the likely long-term impact of autonomous driving on a giant like Volkswagen.