The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1303 GMT - Volkswagen's restructuring agreement is a major positive surprise and proves the company can implement its transformation program despite complex governance and labor constraints, Bank of America Securities analysts Horst Schneider and Stephen Benhamou write. Ahead of the meeting, media reports had suggested an escalating confrontation with labor and state representatives, potentially culminating in legal action or an extraordinary general meeting, the bank says. "Against this backdrop, we believe few expected a unanimous agreement." The plan envisages around 50,000 additional job reductions globally by 2030, taking the total number to 100,000, but the detailed measures still need to be agreed. It is therefore not yet clear when restructuring provisions will be booked, but the bank estimates gross charges of up to 10 billion euros, probably spread over several years. Shares rise 7.6%. (dominic.chopping@wsj.com)

1101 GMT - BRP is navigating tumultuous tariff waters better than feared, TD Cowen analyst Brian Morrison says, noting that management reduced its F2027 net tariff exposure to around C$200 million from its prior guidance of C$300 million to C$350 million. Part of this is because BRP is launching a new side-by-side vehicle engineered to fit into lower-tax trade categories, bypassing higher import duties. "This should be complemented by reduced tariff rates on ATVs in June, partially offset by the commencement of S338 tariffs upon Spyder 3WVs," Morrison says. What's more, the company expects FY2028 tariff exposure to be C$225 million, "which we view as well below what we estimate is in consensus ($350mm-$375mm)." (adriano.marchese@wsj.com)

0951 GMT - Volkswagen's supervisory board approval of a new restructuring plan is a major surprise and represents a fundamental breakthrough for a company many investors had seen as "not fixable," Deutsche Bank analysts write. However, the agreement doesn't solve Volkswagen's challenges overnight, and execution remains key, the analysts say. Deutsche Bank thinks there has been very limited dilution of the board's core transformation targets, aside from a lack of definitive plans to simplify the group structure and close four German manufacturing plants. "Nonetheless, we continue to see it as unlikely that Volkswagen will still produce vehicles at these sites beyond the early 2030s and believe addressing Germany's structural cost disadvantage remains fundamental to any sustainable turnaround." Shares in the German automaker rise 5.5%. (dominic.chopping@wsj.com)

0948 GMT - The Gulf's push to build new trade, energy and logistics infrastructure is likely to continue regardless of the near-term outcome of the Iran war, the Arab Gulf States Institute says. Bypassing the Strait of Hormuz is one objective, but the investment drive extends to pipelines, railways, roads, ports and new economic corridors across the region, says ASGI non-resident fellow Robert Mogielnicki. Saudi Arabia stands to benefit from a westward shift in economic activity, while the U.A.E. is developing eastern export and logistics hubs and Oman is gaining from routes that avoid regional chokepoints. (farhan.rafid@wsj.com)

0634 GMT - Bangkok Expressway and Metro likely has positive catalysts over next 2 years, ttb wealth securities' Saksid Phadthananarak says in a report. The transport company is expected to secure bondholder approval this month to raise debt covenant ratio to 3.0x from 2.5x, easing concerns over potential cash calls. Also, the Thailand company is likely to be awarded two projects in 2027 and is expected to deliver a THB10-per-trip toll increase in September 2028 that should drive earnings to a record high in 2029. The brokerage raises the stock's target price to 8.20 baht from THB8.00 to reflect a base-year rollover, with an unchanged buy rating. Shares are 0.8% higher at THB6.65. (ronnie.harui@wsj.com)

0628 GMT - Volkswagen, its employee representatives and the state of Lower Saxony all made concessions to pave the way for a viable restructuring solution at the automaker, leaders of the IG Metall union and group works council said. A spinoff of the core Volkswagen Passenger Cars brand and VW Components is off the table, and no plant closures are imminent, they said. "Concrete solutions must now be developed for all locations - and we continue to see the board of management as explicitly responsible for this," Christiane Benner, first chairwoman of IG Metall, and Daniela Cavallo, chairwoman of the General and Group Works Council of Volkswagen said in a joint statement. They added that they recognize the challenges facing the company and expect the board to now deliver results promptly. (dominic.chopping@wsj.com)

0558 GMT - Volkswagen's transformation plan has been approved by the supervisory board, which should be positively by the market received when shares resume trading today, Bernstein analysts write. "Especially the planned reduction in forward capital expenditure and research and development by 16%," the bank says. One of the most controversial aspects of the proposed plans, that four German plants would close when existing models phase out between 2031 and 2034, was softened by pledges that no factory would be immediately abandoned. Contentious site decisions will now instead be worked through over the coming months, with Volkswagen stating that alternative uses for the plants will be explored. A workforce adjustment of around 50,000 positions worldwide is planned though, to align capacity with market demand, technological change and competitive pressures. (dominic.chopping@wsj.com)

0536 GMT - ASL Marine's growth opportunities are likely aided by infrastructure initiatives in Singapore, UOB Kay Hian analysts say in a research report. Management highlighted Singapore's S$100 billion coastal protection program and the New Western Island initiative as potential multiyear opportunities, the analysts note. These projects should increase demand for dredging engineering services and vessel utilization, supporting the marine services group's businesses over the longer term. The brokerage maintains the stock's buy rating, but lowers the target price to 0.41 Singapore dollar from S$0.43 to reflect an enlarged share base following the company's recent share placement. Shares are 1.6% higher at S$0.315. (ronnie.harui@wsj.com)

0533 GMT - Volkswagen's supervisory board unexpectedly and unanimously approved management's "brave" restructuring, which is a realistic decision for all concerned, Citi analysts write. The bank says that given Volkswagen's German plant competitiveness and lack of global revenue opportunities, the company simply had no other choice. The plan, which includes another 50,000 job cuts, will allow the company to reduce costs, lower the number of models, and trim investment spend by a further 6 billion euros a year. "This decision should further allow VW to continue to move capital to its highest-return brands and models, without the need to maintain excess capacity utilization." Citi rates Volkswagen at buy with a 94 euro target price. Shares closed at 77.10 euros. (dominic.chopping@wsj.com)

0021 GMT - Qantas Airways's valuation doesn't reflect the improving quality of its earnings, according to Morgan Stanley. Qantas trades on a FY 2027 price-to-earnings multiple of 9.8X. That's some 20% below the median of global peers despite Qantas's high returns, analyst Joseph Michael says. MS has an overweight call and A$12.80/share price target on Qantas, which is up 0.8% at A$9.42 early Friday. MS suggests Qantas's valuation doesn't reflect Qantas's pricing power and its international earnings. "We forecast FY31 Qantas International Ebit of A$1.28 billion, with the FY26 disclosure increasing our confidence in the earnings path," MS says. It notes the Perth-London route provides proof of concept for Qantas's ultra-long haul Project Sunrise program. (david.winning@wsj.com; @dwinningWSJ)

2232 GMT - Could a third party attempt to gatecrash a takeover of MaxiPARTS? Ord Minnett assesses the possibility. MaxiPARTS has received a A$2.50-a-share proposal from Ares Management. Its directors are supportive if Ares firms up the bid. Examining potential interlopers, analyst James Casey says Bapcor is the most obvious candidate. Bapcor owns commercial-vehicle businesses Truckline and WANO. "Acquiring MaxiPARTS would roughly double Bapcor's exposure to the segment and offer obvious synergies," Ord Minnett says. "However, it is unclear whether Bapcor's new management team has investor backing to pursue a major acquisition while the company is still in a turnaround." Another possible suitor is Genuine Parts Co., which owns Repco in Australia. It has no commercial-vehicle exposure in Australia, but has acquired similar businesses overseas, says Ord Minnett. (david.winning@wsj.com; @dwinningWSJ)

1758 GMT - As BRP steadily mitigates tariff headwinds, National Bank of Canada says there were plenty of positives in its 2Q performance. Analyst Cameron Doerksen notes that the leisure-craft maker updated its guidance and now expects higher revenue and normalized Ebitda. "Although much of the guidance increase results from the stronger than anticipated Q2 results, it does imply a better H2 performance than our prior expectations," he says in a note. And while tariffs will still weigh on the company's performance, Doerksen says "we are more positive on management's ability to continue to work down the tariff cost impact and see risk more balanced to the upside." National Bank raises BRP to outperform from sector perform, and lifts the price target to C$112 from C$98.