VW to cut 50,000 jobs amid Trump tariffs and falling Chinese sales

"The 10-brand group, whose luxury subsidiaries Porsche and Audi are also under pressure, said the jobs would go in Germany, affecting the entire group, as part of a restructuring drive in light of the darkening global business climate."

"The fall in profits, to 8.9bn (6.6bn), was largely attributable to US tariffs, the company reported, as well as a costly strategy shift at Porsche, which has postponed its transition to EVs owing to slack demand."

"We are simply seeing how volatile and fragile our world is, with new issues arising every month, Blume said, pointing to a potential drag on sales from the conflict in the region, where volumes are modest but margins high."

Volkswagen, Europe's largest automaker, announced plans to cut 50,000 jobs in Germany by the end of the decade as part of a major restructuring. This follows an earlier agreement to eliminate 35,000 positions through natural attrition. The job cuts respond to falling sales in China and North America, punitive US tariffs, and broader global economic challenges. The company reported a 54% drop in pre-tax profits to €8.9 billion, primarily due to US tariffs and costly strategic shifts. Volkswagen has scaled back electric vehicle production targets across its brands, including luxury subsidiaries Audi, Porsche, and Lamborghini. Geopolitical tensions, including US-Israeli military action against Iran, are expected to increase market volatility and negatively impact demand for premium vehicles.

Read at www.theguardian.com