Volkswagen AG (VW), known internationally as the Volkswagen Group, gradually reduced the nominal value of its stock in Northvolt AB throughout 2024 as the latter company was preparing to file for Chapter 11 bankruptcy, the Financial Times (FT) reported on Monday.
People familiar with the matter insisted that the step-by-step approach enabled Volkswagen to protect its finances from a significant blow. They added, however, that Volkswagen may feel the impact of the Swedish electric vehicles (EV) battery maker's previous decisions to lay off a certain number of workers and close some facilities in Germany.
Volkswagen's stake in Northvolt was at $693 million at the end of 2023. It is not yet known how much in the book value it is now.
