Volkswagen is reportedly planning to cut up to 100,000 jobs and reduce or stop production at some German plants, including Audi and VW sites. The move, aimed at cutting €11bn in costs, comes as the carmaker faces intense competition from Chinese EV rivals and struggles with its transition from combustion engines.
Volkswagen is reportedly planning to cut up to 100,000 jobs and close four German factories, doubling previous staff reduction announcements, amid intense competition from Chinese EV makers and challenges in its electric transition.
Honda reports first operating loss since 1957, with a net loss of $2.7 billion, due to weakened EV demand, US trade policies, and intense Chinese competition, prompting a strategic shift towards hybrid and conventional models.
Volkswagen reported first-quarter operating profit of 2.5 billion euros, down 14.3% year-over-year and below analyst expectations of nearly 4 billion euros. Sales revenue fell 2.5% to 75.66 billion euros. CEO Oliver Blume cited wars, geopolitical tensions, trade barriers, and intense Chinese competition as headwinds. The company plans to cut around 50,000 jobs in Germany by decade's end and expects operating return on sales of 4-5.5% in 2026.
