Volkswagen's chief financial officer, Arno Antlitz, stated, 'The results reflect a challenging market environment and underscore the importance of delivering on the performance programmes we have launched across the group.' He also emphasized that the Volkswagen brand reported an operating margin of only 2%, highlighting an urgent need for significant cost reductions and efficiency gains as the company struggles with decreased sales.
The company announced potential plans to close three plants in Germany, affecting its core Volkswagen brand, and warned of possible pay cuts for employees, presenting a challenging situation ahead. With 120,000 workers affected, this raises concerns about labor relations and potential strikes with unions.
Profits at Volkswagen plunged almost 60% to 2.4 billion euros for the quarter, illustrating the impact of weak demand and a significant decline in sales, particularly in crucial markets like China where a downturn of 12% was reported in the first nine months.
Despite navigating through hardships, Volkswagen remained profitable; however, growth in electric vehicle sales has slowed, making it challenging against new electric vehicle producers in China who are aggressively capturing market share, complicating VW's transition in the automotive landscape.
Collection
[
|
...
]