In the third quarter of 2024, Volkswagen achieved an operating profit of EUR 2.86 billion, on revenue of EUR 78.5 billion. In both cases, this year’s results were weaker compared to the previous year. Operating margin the largest European car manufacturer dropped to just 3.6 percent.the lowest level in over four years. – Bloomberg reported.
These results confirm the arguments of Volkswagen management for introducing drastic measures aimed at reducing high production costs inGerman plants. The management’s plans include closing at least three factories in Germany and eliminating thousands of jobs, which has sparked opposition from trade unions. The company also intends to reduce by 10%. salaries about 140 thousand employees.
Volkswagen’s sales return falls to its lowest level since the pandemic / Bloomberg
VW’s main brand with the lowest margin
The main VW brand earned only 2%. operating margin in the first nine months of the yearVolkswagen Chief Financial Officer Arno Antlitz said in a statement on Wednesday.
Most of the cuts planned by the management will affect the main Volkswagen brand. “This highlights the urgent need for significant cost reductions and efficiency gains,” said Antlitz, who is also chief operating officer.
Trade unions are protesting
Volkswagen announced the results a few hours before the start second round of restructuring negotiations with trade union leaders in Wolfsburgwhere the company is headquartered. On Monday, as part of a protest against the closure of German plants, the company’s employees throughout Germany stopped working for an hour. Warning strikes are possible from December 1.