Volkswagen Prefs.: Feedback CMD Paris Motor show

J.P. Morgan published a research report on Volkswagen Prefs. (VOWG_p.DE), summarizing the company's global strategy update and investor feedback from its Capital Markets Day in Paris and the Paris Motor Show. Management is undertaking an unprecedented effort to simplify the business model, reduce management layers and cut costs over the next few years. In the short term, the firm is looking to reduce overhead costs, with the CFO describing a significant reduction that will initially offset electrification headwinds but is ultimately the largest margin contributor as margin parity between ICE and BEV improves. The company expects a strong fourth quarter driven by Skoda, Audi and strong product momentum, offsetting a weaker third quarter impacted by the summer shutdown. In China, having done extensive work with partners to take down costs and develop competitive products, the firm is now able to compete profitably;