Volkswagen Sales Slide Further as Carmaker Weighs Mass Job Cuts
The carmaker is weighing deeper restructuring after deliveries fell almost 9% in the April-June period, with union protests over proposed cuts continuing.
- On Friday, Volkswagen reported accelerating sales declines in the second quarter, prompting the group to consider cutting up to 100,000 jobs worldwide, including at least 50,000 in Germany by 2030.
- Plunging demand in China caused vehicle deliveries to fall almost nine percent in the April-June period, while the manufacturer faces pressure from US tariffs and slimmer profit margins on electric vehicles.
- Chinese competitors like Geely, Xpeng, and BYD captured nine percent of the European market in March, up from virtually zero three years ago, directly threatening Volkswagen's position.
- Labour representatives and the German state of Lower Saxony hold more than half the supervisory board seats and oppose plant closures, making any major restructuring uncertain and hard fought.
- Volkswagen CEO Oliver Blume warned in April that Chinese rivals are building "highly efficient" factories, suggesting the confrontation will take time as analysts expect talks to extend for months.
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12 Articles
Germany Braces for Steepest Job Cuts Since Pandemic
German companies are preparing to reduce staffing at the steepest pace since the pandemic as expectations for growth weaken and businesses brace for continued cost pressure, according to an S&P Global survey released on Thursday. The net balance of German businesses expecting activity to increase over the next 12 months fell to 10 percent in June from 24 percent in February, its lowest level since October 2024. Phil Smith, economics associate di…
Volkswagen sales slide further as carmaker weighs mass job cuts
Overall vehicle deliveries fell almost nine percent in the April-June period from a year earlier thanks to plunging demand in China, VW said. Sales had fallen just four percent in the first quarter. "The situation in China remains challenging, and we were unable to escape a clearly declining overall market," said VW executive Marco Schubert in a statement. This was "despite initial positive momentum from our newly introduced, locally developed…
Volkswagen sold significantly fewer cars in the second quarter than in the same period last year. Sales in China in particular have fallen.
The crisis-ridden car manufacturer Volkswagen cannot escape the weakness in the important Chinese market. Sales broke again in the second quarter.
Job's messages continue: Sales of VW continue to decline significantly. In the second quarter, the Group is selling nearly 2.1 million vehicles worldwide less than in the same period of the previous year. China in particular makes it possible to create the Group.
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