Volkswagen warns on jobs as margins slip

by SpeedLux
Volkswagen brand logo

Volkswagen will slash jobs as it accelerates the rollout of less labor-intensive electric cars and will evaluate its sprawling portfolio of brands as it battles to reverse a slide in profit margins, the German automaker stated on Tuesday.

The company stated it prepared to launch nearly 70 new electric models by 2028, aiming to put itself at the front line of the industry’s shift to zero-emissions driving after the 2015 emissions scandal.

However, it stated investments to retool factories, and adverse currency moves as well as a sales slowdown led by new emissions certification tests, resulted in a fall in operating margins at its VW, Skoda, Audi and Porsche marques in 2018.

The margin at its top-selling VW brand dropped to 3.8 percent in 2018 from 4.2 percent in 2017.

“Despite all the rhetoric, the opportunity to reduce a historically high fixed cost base, 2018 actually saw a new high,” stated Evercore ISI analysts. “This is unacceptable.”

The group stated it would answer by aligning management pay and bonuses more closely with profitability, slashing manufacturing complexity and decreasing headcount by an unspecified amount.

Chief Executive Herbert Diess also stated it is evaluating its portfolio of brands, which also consists of Lamborghini, Ducati and Bentley, and whether to divest some non-core businesses.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.


©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More