Stifel's analysts cited growing concerns over Volkswagen's financial outlook, governance issues at Porsche Automobil, and the ongoing complexity of its investment portfolio as key reasons for the downgrade. Central to the downgrade of Porsche Automobil is a revision in their estimates for Volkswagen's earnings per share (EPS) and dividend payout ratio. The new forecast suggests that Porsche Automobil's dividend income from Volkswagen could be reduced by approximately EUR 500 million per year. This is largely due to the challenges facing Volkswagen, which include pressures from unions, weak free cash flow (FCF) projections, and an uncertain economic environment. Volkswagen's decision to cut dividends seems increasingly likely as the company navigates the complexities of balancing shareholder returns with labor concerns, including possible factory closures and workforce reductions.