"Growth prospects are also weighed down by continuing geopolitical tensions and conflicts. Risks stem in particular from the Russia-Ukraine conflict, the confrontations in the Middle East, as well as growing uncertainties regarding the policy stance of the USA and the global increase of geoeconomic measures, which could further exacerbate geopolitical tensions."
"We are facing trade policy barriers, completely changed markets, different regulatory systems. The business model that has supported us for decades in the Volkswagen Group is not tenable anymore."
Volkswagen, Europe's largest automaker, announced plans to eliminate 50,000 jobs in Germany by 2030, escalating previous restructuring targets of 35,000 positions. The company reported sharp drops in annual operating profit for 2025, driven by intensified competition in China and U.S. tariffs on European vehicle imports. CEO Oliver Blume stated the automaker faces a fundamentally different operating environment requiring strategic transformation. Volkswagen cited volatile geopolitical conditions, trade policy barriers, and regulatory changes as primary challenges. The company, which owns ten brands including Audi, Porsche, and Lamborghini, warned that market pressures will likely intensify. Management emphasized that the business model sustaining the group for decades is no longer viable under current market conditions.
Read at Fast Company
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