KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
Volkswagen AG, Europe’s largest automaker, is planning to shut down at least three factories in Germany as part of a sweeping cost-reduction effort, according to the company’s top labor leader, Daniela Cavallo. These cuts are aimed at making the company more competitive amid declining demand in Europe and increased competition from Chinese automakers like BYD.
In addition to the closures, VW plans to implement universal pay cuts of 10% for employees at the main VW brand and reduce the scale of operations at all other remaining sites in Germany. The measures will include reducing products, quantities, shifts, and entire assembly lines, Cavallo said during a speech to VW workers in Wolfsburg.
“This is starvation, a weakening in installments,” she added, expressing concern that these cost-cutting moves would significantly affect the workforce. Cavallo also warned that this could threaten “tens of thousands” of jobs in Germany, with particular impact on the Osnabrück factory, as Porsche has already terminated its production relationship there.
The announcement comes ahead of VW's expected third-quarter results, which are predicted to show declining sales and profit. The automaker has struggled with a botched shift to electric vehicles and poor pricing strategy, which union leaders argue are the result of boardroom mistakes. Porsche and Audi, VW’s premium brands, which have been the company's main profit drivers, are also facing difficulties, with Porsche considering cost cuts after a demand slump in China.
Warning strikes at VW sites in Germany are possible starting December 1 if negotiations fail to yield results, as the company faces increasing pressure to restructure amid difficult market conditions.
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