As it battles fierce competition in China, Europe’s biggest automaker, Volkswagen, reported a €5.8 billion loss for the third quarter on Thursday. During the same quarter a year ago, the company lost €1.1 billion. The company reported a 6.3% decline in sales to €75.3 billion.
The results after nine months make it quite clear: time is of the essence. “We need to move swiftly and with conviction,” stated Arno Antlitz, head of VW’s financial division, in a video message. Volkswagen is under intense pressure to rethink its business model due to rising tariff charges, intense competition in China, and the costly cost of transitioning to electric vehicles in Europe, where Volkswagen’s competitors are making inroads.
Volkswagen is facing intense pressure to change its business model due to fierce competition in China, huge tariff expenses (in the billions of dollars annually), and the high cost of increasing the production of electric vehicles in Europe, where their Chinese competitors are also making progress.
The CEO, Oliver Blume, has announced intentions to lay off 100,000 workers across the board, including at the Audi and Porsche (P911 p.DE) brands (opens new tab). His plan, which has been strongly opposed by unions and could lead to strikes starting early next year, could result in the closure of up to four plants in Germany.
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