VW's billion-euro loss increases pressure to cut costs within the group
Europe's largest automaker is suffering from the weakness of Porsche and the collapse of the China business. In the debate about restructuring, this can give the management a boost.
Volkswagen, Europe's largest automaker, reported an operating loss of 5.9 billion euros for the third quarter, largely due to one-time special effects, including a 6.4 billion euro write-down of its Porsche subsidiary. The company's China business has declined sharply, with sales down 40% year-over-year, and the company now aims to cut up to 50,000 jobs and close four German plants as part of a plan to achieve 31 billion euros in annual savings.
The weak results may give the company's management leverage in negotiations with employee representatives, who have been resisting plans to cut jobs and close plants. Volkswagen's operating margin was 3.8%, below the company's target of at least 8%.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
