VW is not simply making sufficient revenue; count on extra job cuts, lowered lineup

The VW Group finds itself in an uncommon place. Demand isn’t the issue—profitability is.

CEO Oliver Blume not too long ago made that clear, admitting that whereas the corporate’s automobiles stay fashionable, they merely aren’t producing sufficient return. That’s a worrying assertion for an automotive large of this scale. “Our merchandise are very fashionable—however we’re not making sufficient cash on them. That’s why we have to additional cut back our prices—throughout all price classes,” says Blume.

VW is making ready to considerably slim down its huge portfolio, doubtlessly slicing as much as 50% of fashions throughout its manufacturers. That features all the things from Audi and Porsche to Lamborghini, Bentley, and Skoda. The concept is to concentrate on what brings in actual revenue.

Blume says, “Sooner or later, we wish to improve gross sales per mannequin. To realize this, we’re persistently streamlining our product portfolio.”

Then there’s the human price. Studies counsel job cuts might go far past the already introduced 50,000 roles, with figures as excessive as 120,000 being mentioned. Whereas unconfirmed, it underlines the seriousness of the state of affairs.

Supply: Bild