Volkswagen Group will face buyers hungry for solutions at its capital markets day subsequent Wednesday on the way it will obtain excessive cost-cutting targets and whether or not it’ll heed their requires an impartial audit of its co-owned Xinjiang plant in China.

Strain is excessive after a turbulent shareholder assembly in Might the place activists interrupted proceedings with protests in opposition to the automaker’s collectively owned plant in Urumqi, Xinjiang, and buyers grilled executives on their plans to tackle Chinese language competitors in electrical autos.

“The 21 June CMD is a chance to reset a fraught relationship with buyers, a difficult train,” Jefferies wrote in a observe on Friday.

VW has invited buyers to the Porsche Expertise Heart at a racetrack in southwest Germany to test-drive its automobiles, hear shows on its manufacturers and get an up to date monetary technique from VW Group CEO Oliver Blume and CFO Arno Antlitz.

The Porsche-Piech household, who personal 31.9 p.c of Volkswagen, expect Blume to start replicating his success from Porsche at VW Group, a supply near the households stated, with the caveat {that a} multi-brand group can’t obtain the identical margins as a luxurious participant.

Stellantis, BYD benchmarks

One supply near the corporate stated Stellantis, which has an identical variety of manufacturers as VW Group however increased margins, was seen by some as a benchmark, in addition to quick rising Chinese language EV giants equivalent to BYD.

Traders additionally demanded that VW conduct an impartial audit of the Urumqi plant, which executives have stated is simply doable with the settlement of three way partnership accomplice SAIC. Two buyers, who declined to be named, stated they count on the subject to come back up once more on Wednesday.

Alongside targets, buyers wanted particulars on how the automaker expects to make its EV manufacturing more cost effective, Daniel Roeska of Bernstein Analysis wrote in a observe on Thursday.

“The chance is that as a substitute we see extra punchy earnings and quantity targets, with little to assist them,” he added.