FRANKFURT (Reuters) - Rating agency Moody's has cut its outlook on Volkswagen to "negative" from "stable", citing a deteriorating operating performance at Europe's top carmaker and expected challenges to turn the situation around.

"We expect VW's operating performance to be muted into 2025 driven by low volume growth globally including a weak domestic China and sluggish Western Europe, increasing price pressure, potential fines on EU CO2 emissions, as well as additional restructuring costs," Moody's said.