Volkswagen reported a €5.9 billion operating loss in Q3, its worst since 2015, as sales in China fell over 30% and profit margins dropped to 3.8%. CFO Arno Antlitz warned the company must act quickly to cut costs and invest in future technologies. The German automaker is targeting €31 billion in savings through a sweeping restructuring, including cutting 100,000 jobs by 2030.
Once dominant in China, where joint ventures generated half its profits, Volkswagen now faces fierce local competition and shifting market dynamics. Even its Porsche brand, historically the most profitable, expects China to account for only 10% of sales by 2030. The company also struggles with U.S. tariffs, high energy costs, and lower EV profitability.
Other European automakers like Volvo are also cutting jobs as China’s market deteriorates.
Source: New York Times Business · Summarized by HeadlinesBriefing