4 ms·
There is your answer: https://www.nasdaq.com/articles/volkswagen-is-burning-over-%242b-a-week-ceo-confirms-shares-fall-2020-03-27 https://www.nasdaq.com/artic
by ardit33 7y ago
There is your answer:
https://www.nasdaq.com/articles/volkswagen-is-burning-over-%242b-a-week-ceo-confirms-shares-fall-2020-03-27 https://www.nasdaq.com/articles/volkswagen-is-burning-over-%...
VW, is burning 2bill a month in cash, just by sitting idle....
Furloughing can save maybe %20 of the costs.
A lot of the fixed recurring costs (costs and obligations that keep going even if you are not producing anything) make at least 30% of the producing value....
So, just for VW, if it sits idle for 6 months it will cost 12 Billion dollars.....
That's just one example, but there plenty of companies with the same spot. They can absorb few months of this situation, but after that all bets are off.
- peteretep 7y agoYour article is 2 weeks old, since which VW have furloughed many staff (also worth noting it's $2bn per _week_). Where do you get your minimum baseline on staff cuts only saving 20% from?