...The affirmation of Volkswagen AG's (VW) Long-Term Issuer Default Ratings (IDRs) reflects Fitch Ratings' expectation that profitability and free cash flow (FCF) generation will recover to levels consistent with the company's rating sensitivities by around 2028, despite continued challenges across the global automotive sector. This assumes the effects of the group's restructuring and cost-cutting programme and stabilisation of European production volumes. VW's business profile remains supported by its position as the world's leading automotive manufacturer, with a strong balance sheet continuing to anchor the rating. The Negative Outlook reflects execution risks associated with the scale and complexity of the restructuring programme, as well as potential governance constraints. A downgrade would likely follow if we view profitability and FCF generation as structurally impaired below the rating sensitivities, including due to a weakened business profile driven by market share losses. ...
