Volkswagen to axe half its car models
The automaker is targeting fewer models and simpler platforms as it faces falling sales, Chinese competition and tariff pressure.
- On Thursday, Volkswagen held a tense supervisory board meeting, announcing plans to reduce its model lineup by half and cut production capacity to 9 million vehicles annually, though management stopped short of confirming immediate job cuts.
- Henning Gebhardt, partner at HollyHedge Consult, described Volkswagen as facing a 'perfect storm' on Friday, citing intense Competition from Chinese automakers, German tariffs, and a stock price down more than 30% so far this year.
- Reports suggest Volkswagen is weighing up to 100,000 job cuts and closure of four German plants: Hanover, Zwickau, Emden, and the Audi facility in Neckarsulm, which would double the 50,000 job cuts previously announced.
- The General Works Council and German industrial union Metall have vowed to resist these measures, with employees staging protest events outside the Zwickau Volkswagen Plant on Thursday to demonstrate against the potential restructuring.
- Analysts at Jefferies noted on Thursday that the rescue plan provided 'limited new information,' as the firm faces the most radical overhaul in its nearly 90-year history, currently opposed by German lawmakers and labor unions.
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Volkswagen faces problems in various parts of the world, which led it to announce, on Thursday, that it will reduce by up to half the number of models it offers. However, many of its challenges originate in China. Exclusive material for subscribers. To have full access, access the link of the material and register.
Volkswagen has announced an unprecedented restructuring plan, which implies the disappearance of up to 50% of the range of models. In addition, customization options will be cut by up to 75%. Volkswagen Group...
Volkswagen entered a deep reorganization, under pressure from China's competition and global car market slowdown, according to CNBC. The German group announced a new plan to reduce the number of models and annual production capacity. However, the management did not confirm the information on mass layoffs or closures of factories in Germany. ...
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