Volkswagen Profit Plunges as Carmaker Weighs Mass Job Cuts
The automaker blamed tariffs, weaker EV demand and China competition as it projected sales revenue to fall by as much as 3% and considered 100,000 cuts.
- On Friday, German automaker Volkswagen reported an operating profit of €3.5 billion for the second quarter, missing analyst expectations of €4.3 billion amid mounting market pressures.
- Volkswagen cited discontinuation of its top EVs in Tennessee and negative mix effects, compounded by billions in tariff costs and intensifying competition from Chinese brands.
- Shares of Volkswagen are down nearly 30% year-to-date, and the company now expects sales revenue to decline between 0% and 3% this year, reversing its prior growth forecast.
- CEO Oliver Blume proposed 100,000 job cuts as part of a radical restructuring, citing costs 20% higher than comparable businesses in a memo distributed earlier this month.
- Blume plans potential closure of four German factories—Hanover, Zwickau, Emden, and Audi's Neckarsulm facility—to shield the group amid "continued unavoidable headwinds in the double-digit billions.
45 Articles
45 Articles
Volkswagen CFO Weighs Plant Closures, Job Cuts Amid Profit Slump - Internewscast Journal
Internewscast Journal Internewscast A German national flag flies on a barge near the Volkswagen AG… This Post: Volkswagen CFO Weighs Plant Closures, Job Cuts Amid Profit Slump first appeared on Internewscast Journal
The German auto giant is facing a slowing down of the Chinese market and exceptional loads, forcing the group to review its annual forecasts.
Weaker sales, pressure from Chinese competition and high costs continue to weigh on the Volkswagen Group. The automaker, which also includes the Czech Skoda Auto, saw its net profit fall by 30.7 percent to 3.1 billion euros (about 75 billion crowns) in the first half of the year. Skoda Auto itself, on the other hand, reported higher operating profit, production and sales.
(Berlin=Yonhap News) Correspondent Kim Gye-yeon = German automaker Volkswagen Group reported a net profit of 1.538 billion euros (2.57 trillion won) in the second quarter of this year, compared to the same as last year...
The German auto giant is weakened by the collapse of its sales in China, exceptional loads and a world automotive market under stress.
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