Volkswagen, the largest automobile manufacturer in Europe, disclosed on Thursday that it had suffered a €5.8 billion loss during the third quarter due to the fierce competition it faces in China. During the same three-month period last year, the organization disclosed a loss of €1.1 billion. The group reported that overall sales decreased by 6.3% to €75.3bn.
The results of the nine-month period are unequivocal: We cannot afford to lose any time. Arno Antlitz, the finance chief of Volkswagen, stated in a video statement that “we must act quickly and decisively.”
The findings underscore the necessity for Volkswagen to reevaluate its business model in the face of intense competition in China, the escalating annual tariff costs, and the costly transition to electric vehicles in Europe, where Chinese competitors are also gaining ground.
The results underscore the pressure on Volkswagen to transform its business model in response to brutal competition in China, billions in annual tariff costs, and a costly ramp-up of EVs in Europe, where Chinese competitors are also making gains.
CEO Oliver Blume plans to eliminate 100,000 positions across the organization, including the Audi and Porsche (P911_p.DE) brands. Unions have met his proposal with fierce opposition, and potential strikes could begin as early as next year, with up to four plants in Germany at risk of closure.
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