German auto workers protest amid VW profit warning

On Monday, German auto workers held nationwide demonstrations following Volkswagen's surprise profit warning, which exposed the industry's struggles with high costs and competition from Asian manufacturers. The unrest occurred at Volkswagen and parts supplier Bosch, as the German automotive and supplier industries grapple with potential job losses, production shifts, and even factory closures.

Horst Ott, representing trade union IG Metall, attributed the crisis to managers' failure to adapt to advancements in e-mobility, digitalization, and battery technology.

European automakers face intensified competition from Asian rivals, both internationally and domestically, further exacerbating the challenges. Volkswagen, already battling overcapacity, financial strain in China, and US tariffs, has slashed its 2026 profit margin expectations to a meager 1%. The company's Porsche brand has also underperformed due to increased demand for less profitable electric vehicles, highlighting the sector's continued reliance on traditional combustion engines.

Volkswagen's shares dipped by 0.6, while Porsche's stock fell by 2.3%, extending declines from the previous day.