Volkswagen Group is facing significant financial pressure as market conditions shift, leading the company to lower its operating margin forecast from 4 percent to 1 percent. Finance chief Arno Antlitz stated that the company has no time to lose in addressing these profound and lasting market changes.
The group is considering a comprehensive cost-cutting plan that could result in up to 100 000 job losses across its brands. Reports suggest Porsche may implement an additional 4 100 layoffs on top of the 8 900 already announced, potentially eliminating one in five jobs at the brand by 2035.
Strategic changes include a potential phase-out of the SEAT brand and the possible sale of Ducati. The company also plans to reduce component variety by up to 75 percent and cut the number of available models by up to 50 percent, with the Touareg model already discontinued.
Operational adjustments involve repurposing manufacturing sites. The Osnabrück factory will transition into a security and defense competence center, while plants in Emden, Zwickau, Hanover, and Neckarsulm currently lack allocations for new models following the closure of the Audi Brussels site.
