Volkswagen records major writedown on its stake in battery maker Northvolt – Reuters
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Volkswagen (OTCPK:VWAGY) has taken a major writedown of its 21% stake in the Swedish battery company, Northvolt, Reuters reported Monday, citing two sources.
The writedowns at the German automobile giant were done throughout the current financial year, sources told Reuters, without disclosing the current value of the stake.
Volkswagen is the top shareholder in the battery cell maker that filed for bankruptcy protection in the U.S. last week.
At the end of 2023, the automaker’s book value of its holding in the battery firm was 693M euros ($726M), down nearly a quarter from a year earlier. That value dropped dramatically over the course of 2024, sources told Reuters, and declined to be identified because the information is confidential.
The report said several top shareholders of Northvolt have been shedding or reviewing the value of their holdings in the firm, which has kept missing production targets.
According to a Financial Times report from Saturday, citing letters to investors, funds managed by Goldman Sachs (GS) are expected to write off their $900M stake in Northvolt to zero by the end of the year.
Goldman is Northvolt’s second-largest shareholder with a 19.2% stake.