Volkswagen Cuts Margin Forecast to 1% as Cost Crisis Threatens 100,000 Jobs
Updated
Updated · Motor1 · Sep 21
Volkswagen Cuts Margin Forecast to 1% as Cost Crisis Threatens 100,000 Jobs
3 articles · Updated · Motor1 · Sep 21
Summary
Volkswagen said its operating margin target has been cut to 1% from 4%, deepening a profit warning as management pushes urgent restructuring across the group.
China weakness, high German energy costs and intensifying competition from Chinese carmakers are squeezing earnings, while EV growth still brings lower margins than combustion models.
Up to 100,000 layoffs are being weighed across brands, model lines could be cut by as much as 50%, and component variety on next-generation vehicles may be reduced by 75%.
Porsche denied a report that it plans another 4,100 job cuts beyond 8,900 already announced, while Volkswagen is also considering a gradual phase-out of the SEAT brand.
The overhaul could reshape VW's factory footprint after Audi's Brussels closure, with several German plants lacking new model allocations and Osnabrück set to shift toward defense-related work.