{"id":60998,"date":"2026-07-25T07:49:15","date_gmt":"2026-07-25T07:49:15","guid":{"rendered":"https:\/\/www.europesays.com\/germany\/60998\/"},"modified":"2026-07-25T07:49:15","modified_gmt":"2026-07-25T07:49:15","slug":"volkswagens-radical-restructuring-sales-forecast-decline-and-major-job-cuts-ahead-etauto","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/germany\/60998\/","title":{"rendered":"Volkswagen’s Radical Restructuring: Sales Forecast Decline and Major Job Cuts Ahead, ETAuto"},"content":{"rendered":"

\"InIn the first half of the year, Volkswagen delivered 6.3 per cent fewer cars globally, driven largely by ongoing difficulties in China, where a protracted downturn in the worlds largest car market has intensified \u200bcompetition between local brands and international automakers.Volkswagen no longer expects revenue to grow \u200bthis year, after the German carmaker dropped its previous forecast on Friday, setting the stage for a radical overhaul in response to costly tariffs and intensifying competition from China. The announcement came with second-quarter results showing \u200ca 9.5 per cent profit slump, \u2060with \u2060CEO Oliver Blume pushing for a radical restructuring of the world’s No. 2 automaker, including 100,000 proposed job cuts, \u200bto make it more cost-competitive.Volkswagen now expects a decline of up to 3 per cent in sales revenue \u200bthis year, having previously forecast growth of up to 3 per cent. The company maintained its forecast for an operating margin in the range of 4.0 per cent to 5.5 per cent, an improvement on last \u200byear’s 2.8 per cent.<\/p>\n

Shares in the company were 3 per cent lower following the announcement.<\/p>\n

The German auto group, which includes subsidiaries Porsche and Audi, reported \u200ban operating profit \u200bof \u20ac3.5 billion ($3.98 billion) in the April-to-June period.<\/p>\n

Analysts had expected a slight \u2060improvement on the same quarter last year, according to a poll \u200bconducted by Visible Alpha.<\/p>\n

Second-quarter revenue came in at \u20ac82.4 billion, higher than forecast. \u200bThis made for an operating margin of 4.2 per cent.<\/p>\n

The group managed to offset “continued unavoidable headwinds in the double-digit billions” in the first half of 2026, Blume said.<\/p>\n

“At the same time, the environment for the automotive industry remains extremely challenging,” he said, pointing to geopolitical crises, trade conflicts, high regulatory requirements, volatile markets and intensified competition. Pending a confrontation with labour representatives \u200cover the proposed doubling of current redundancy programmes and the possible closure of four factories, Blume has pledged to trim global production capacity and reduce \u200bthe group’s model \u200blineup by up to \u2060half.<\/p>\n

In the first half of the year, Volkswagen delivered 6.3 per cent fewer cars globally, driven largely by ongoing difficulties in China, where a protracted downturn in the world’s largest car market has intensified \u200bcompetition between local brands and international automakers.<\/p>\n

In North America, however, Volkswagen was able to regain some ground in the second quarter. The rollouts of entry-level electric vehicles across its VW, Skoda and Cupra brands have also boosted orders in Europe, where local automakers are rushing to secure EV market share as Chinese competitors increasingly look to the region.\n <\/p>\n

Published On Jul 25, 2026 at 08:24 AM IST<\/p>\n

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