The VW Group finds itself in an unusual position. Demand isn’t the problem—profitability is.
CEO Oliver Blume recently made that clear, admitting that while the company’s cars remain popular, they simply aren’t generating enough return. That’s a worrying statement for an automotive giant of this scale. “Our products are very popular—but we’re not making enough money on them. That’s why we need to further reduce our costs—across all cost categories,” says Blume.
VW is preparing to significantly slim down its vast portfolio, potentially cutting up to 50% of models across its brands. That includes everything from Audi and Porsche to Lamborghini, Bentley, and Skoda. The idea is to focus on what brings in real profit.
Blume says, “In the future, we want to increase sales per model. To achieve this, we are consistently streamlining our product portfolio.”
Then there’s the human cost. Reports suggest job cuts could go far beyond the already announced 50,000 roles, with figures as high as 120,000 being discussed. While unconfirmed, it underlines the seriousness of the situation.
Source: Bild