The growing power of the US and China in the battery sector has plunged the German giant Varta into a financial crisis. With a 140-year history, Varta is now on the verge of collapse under a mountain of debt.
THEY ARE IN A DEBT CRISIS
Varta has recently been in the spotlight due to financial difficulties stemming from a debt burden exceeding 600 million euros.
According to information reported in Ekonomim, the company is experiencing a cash crunch, which is leading to serious disruptions in payments.
Known for its 140-year history, Varta is heading toward a major collapse as its share prices have fallen below levels seen during the 2008 crisis, which is considered one of the largest crashes in world stock market history.
Varta, which once reached a historic peak by signing an AirPods production agreement with Apple, has struggled against the cost pressures of Chinese manufacturers. Unable to cover the R&D investments necessary to develop electric vehicle batteries, the German giant has had difficulty standing up to the aggressive raw material supply strategies of Chinese giants like BYD and CATL. This situation has caused Varta to lose a significant portion of its market share, including among German brands.
News Source: 12punto
