Volkswagen posts 5.8bn euro loss as Chinese competition bites
FRANKFURT: German carmaker Volkswagen reported Thursday a loss of 5.8 billion euros ($6.5 billion) for the third quarter, down from a loss of 1.1 billion euros in the same period last year, as it struggles with intense Chinese competition. Sales fell 6.3 percent in the quarter to 75.3 billion euros, Volkswagen said. Overall vehicle deliveries fell 14.3 percent worldwide but collapsed almost 40…
German automaker Volkswagen posted a staggering 5.8 billion euro loss in the third quarter of 2022, a significant increase from the 1.1 billion euros loss reported in the same period last year. The decline in profit is attributed to intense competition in China, the world's largest automobile market, where the company's sales fell by 14.3 percent and worldwide deliveries dropped almost 40 percent.
Volkswagen, which owns brands such as Audi, Seat, and Skoda, warned that a 10 billion euro hit to its annual profit was expected, primarily due to a writedown of its stake in Porsche. The company plans to cut 120,000 jobs across the group by 2030 to curb costs, and its restructuring efforts will cost 31 billion euros. Volkswagen's CFO, Arno Antlitz, emphasized the urgency of implementing these changes, stating that the company "cannot lose any time" and needs to act "quickly and decisively" to ensure its long-term survival and ability to fund future investments.
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