Volkswagen faces massive losses on Northvolt investment

In Sweden, Volkswagen's significant investment in Northvolt, a battery manufacturer, has suffered drastic financial losses. Throughout the current fiscal year, the automaker has written down the value of its €1.4 billion stake as Northvolt's situation worsened significantly. Recently, Northvolt filed for Chapter 11 bankruptcy protection, a move that followed drastic measures including laying off 1,600 employees in September and hawking assets from its acquisition of Cuberg in November. Financial reports indicate that Northvolt was consuming approximately $100 million a month, highlighting the urgency and severity of its financial distress. Given these developments, Volkswagen's current stake seems unlikely to have regained value amid the mounting challenges Northvolt faces.