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According to media reports, Volkswagen Group (China) CEO Baird responded to sales, cost cuts, layoffs and other issues. Berred stressed that 2024 and 2025 are critical periods for the transformation of the group, and despite the challenges, they are ready. Baird pointed out that at a time when it is difficult to make a profit in the electric vehicle business, Volkswagen will optimize its cost structure and give priority to profitability rather than blindly pursuing market share. "the fuel vehicle business will continue to provide financial support for the group's transformation and maintain a balance in the sales structure of both oil and electricity," Baird said. At present, it is very difficult to make money from the electric vehicle business, and we should actively optimize the cost structure to ensure that the group can remain profitable even in the toughest competitive situation. "

Baird believes that in the long run, Volkswagen Group will ensure that it will maintain a solid market position by 2030, when its competitiveness in the electric vehicle business will reach a new height. It is understood that from 2026, Volkswagen Group's strategy will bear fruit, launching four models of similar size to Tuguan at a price of about 20,000 euros, which will bring profits to Volkswagen Group. In addition, Volkswagen will work with Xiaopeng to develop two B-class models, while Audi and SAIC are developing three smart electric models. By 2027, Volkswagen will launch 40 new models in the Chinese market, 20 of which are new energy models (including pure electric and hybrid models).

In the first three quarters of 2024, Volkswagen Group's revenue was 237.279 billion euros, up 0.9% from a year earlier, but operating profit fell sharply to 12.907 billion euros from 16.241 billion euros in the same period in 2023, while operating profit margins also shrank to 5.4% from 7.0% in the same period, according to the results. Among them, Volkswagen brand, the core brand of Volkswagen Group, has an operating profit margin of only 2.1%.

Volkswagen Group's global sales in the first three quarters of 2024 were 6.5243 million, down 2.8 per cent from a year earlier, including 2.1763 million in the third quarter, down 7.1 per cent from a year earlier, according to data. The decline in Volkswagen Group's global sales is mainly due to the Chinese market, where growth in the Americas is offset by declines in Western Europe and China. Data show that China is Volkswagen Group's largest single market in the world, with sales of 2.0566 million vehicles in the first three quarters of 2024, accounting for 31.5% of global sales, but the market sales fell 10.2% year-on-year, the largest decline in sales. In addition, Volkswagen sales in Western Europe fell 0.7% to 2.4244 million vehicles. For comparison, Volkswagen grew in North America, South America, the Middle East / Africa, of which South America grew 14.6% year-on-year, but because the market was far smaller than the Chinese market, even growth failed to offset the decline in the Chinese market.

Not long ago, it was revealed that Volkswagen China is laying off staff, mainly related to the imported car business, involving the Volkswagen Import Automobile (China) sales Company (VGIC), with nearly 100 layoffs. It is reported that Volkswagen China has given employees two options in this round of layoffs. The first is for Beijing to leave to work in Hefei, and the second is to lay off staff directly and give compensation to the highest Nintendo 6. It is important to note that not everyone can get Never6 compensation. The main criteria are regular employees who need to work at Volkswagen for many years.

According to foreign media reports, Volkswagen CEO Oliver Bloom said in an interview that in order to solve Volkswagen's "decades of structural problems", cost-cutting plans are inevitable. In his view, operating costs in Germany are the main drag on Volkswagen. "We have to significantly reduce costs in Germany."

In September, Volkswagen publicly announced a plan that included massive layoffs and the closure of some factories in Germany. If the plan is implemented, it will be the first time Volkswagen has closed a local factory since its inception. At the same time, Volkswagen plans to terminate a 30-year-old employment protection agreement that guarantees employees against layoffs until the end of 2029, which will allow Volkswagen to cut jobs from mid-2025. Currently, Volkswagen has 10 factories in Germany, six in Lower Saxony, three in Saxony and one in Hesse.

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