VW and the China Shock: What a Breakaway of the Most Important Market for Wolfsburg Means
4 Articles
4 Articles
VW is losing massive market share in China. What the collapse means for profits, plants and tens of thousands of jobs in Germany.
According to the German group, Volkswagen has reduced its expectations for the operational profit margin this year, noting the contraction of China's automobile market and the costs of the restructuring and job reduction plan. In a statement, Volkswagen said that it did not expect the operating profit margin to exceed 1% this year, down from the previously expected range of 4% to 5.5%.
The VW Group must drastically adjust its profit forecast downwards. Chief Financial Officer Arno Gesicht is rushing to appease, but his explanations reveal abysses.
Volkswagen expects to have to settle for significantly lower profits this year. The German car group announced on Friday that it is lowering its forecasts due to a contraction in the Chinese automotive market and the costs of the plan to cut thousands of jobs.
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