The European truck industry has entered a critical period of transformation

In addition to Volkswagen, there are reports that Mercedes Benz may also gradually reduce its stake in Daimler Trucks. Previously, Daimler Group benefited greatly from active capital adjustments, especially with Daimler Trucks demonstrating stronger development potential after the spin off. Based on this, the industry generally believes that selling a portion of Volkswagen Group's shares is a wise choice.
It is not difficult to find through sorting that since its listing, the stock price of Chuantuo Group has been influenced by multiple factors for a long time and has always been lower than the issue price. However, this situation saw a turning point in the first quarter of 2024. Thanks to the recovery of the commercial vehicle market, Chuantuo Group's core profitability has increased, sales revenue has grown, and the stock price has also rebounded with the increase in order volume. In April, it even climbed to 36.7 euros, setting a new historical high. At present, the market valuation of Chuantuo Group remains at a relatively high level. If Volkswagen can adjust its strategy in a timely manner based on market feedback and sell some shares of Chuantuo Group, it is expected to obtain considerable profits. More importantly, Volkswagen is currently facing unprecedented challenges in terms of financial performance, market competitiveness, internal management, and other aspects. Selling some shares of Transsion Group may become an important measure for Volkswagen to cope with difficulties, seek strategic transformation and financial optimization, "said logistics industry expert Kong Zhen. Taking performance as an example, Volkswagen's recently released financial data shows that its operating profit in the third quarter of 2024 fell sharply by 42% year-on-year, to 2.86 billion euros, and its operating profit margin was as low as 3.6%, setting a record low in over four years. Meanwhile, net profit also decreased by 64% year-on-year, to only 1.58 billion euros, far below market expectations. The pressure on performance and severe financial situation have forced Volkswagen to take more aggressive cost cutting measures internally, including layoffs, salary cuts, and selling local factories. In this context, selling a portion of Chuantuo Group's shares to raise approximately 2 billion euros is undoubtedly a wise move for Volkswagen. This will not only bring much-needed working capital to the company, alleviate the tight cash flow situation, but also create favorable conditions for the future development of Chuantuo Group, which will take this opportunity to attract more investment to better cope with the electrification transformation.