Finance
Volkswagen board members push for further cuts, Handelsblatt reports
Published by Global Banking & Finance Review®
Posted on January 30, 2025
1 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 30, 2025
1 min readLast updated: January 27, 2026
Volkswagen's board may implement further cuts as initial measures fall short. Profitability targets are delayed due to competition and slow EV adoption.
BERLIN (Reuters) - Concerns are growing among Volkswagen's board members that sweeping cuts agreed with unions late last year will not be enough to turn around the struggling carmaker's core brand, the Handelsblatt business daily reported on Thursday.
The expectation is that further cost-saving measures will be needed beyond the agreed job cuts, the report said, citing sources familiar with the matter.
Handelsblatt also reported that the company would push back its profitability target, aiming for a 6.5% margin in three to four years, rather than by then end of next year.
A spokesperson for Volkswagen declined to comment on the report.
In December, Europe's top carmaker averted mass strikes with a deal to cut more than 35,000 future job cuts, seeking to regain ground from cheaper Chinese rivals amid weak demand in Europe and a slower-than-expected adoption of electric vehicles.
(Writing by Rachel More, Editing by Miranda Murray)
The main topic is Volkswagen board members considering further cuts to improve the company's core brand performance.
Further cuts are considered because initial measures may not be sufficient to meet profitability goals amid competition and slow EV adoption.
Volkswagen aims for a 6.5% profitability margin in three to four years, delaying the target from the end of next year.
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