Pharmaceuticals VW earns significantly less
The crisis-ridden Volkswagen Group suffered a severe slump in profits in the third quarter. A weak industry environment with fewer vehicle sales and the initiated capacity and job cuts within the Group resulted in a billion-euro burden.
30.10.2024, 08:10
SDA
The figures were weaker than analysts had already feared. Group profit after tax fell by 64 percent to 1.58 billion euros - partly because VW is also doing badly in the important Chinese market. Turnover, on the other hand, fell by only half a percent to 78.5 billion euros.
The management around CEO Oliver Blume maintained the annual forecast, which was lowered again in September. Blume has cut red tape in the Group and wants to save billions in order to get the low-profit core brand VW Passenger Cars back on track.
According to the Works Council, the Board of Management wants to close at least three German VW plants and downsize the rest; tens of thousands of employees are to be made redundant. Significant salary cuts are also on the cards. The employees have announced fierce resistance and are demanding a more comprehensive approach than just focusing on labor and factory costs. This Wednesday, the company and the IG Metall trade union will meet for the next round of talks on the VW in-house wage agreement.
