19:25 4 August 2026
Volkswagen going through crisis
Volkswagen, long a symbol of German engineering and European industrial strength, is facing a fundamental challenge to its business model. The group employs about 680,000 people, operates more than 100 plants and generates over EUR 320 bln in annual revenue. However, high production costs, technological delays and intensifying Chinese competition are eroding its position. Volkswagen’s sales in China fell by more than 30% y/y in the first half of 2026, while its market share has roughly halved to 10%.
The company has also fallen behind BYD in electric vehicles. In response, Volkswagen is preparing its largest-ever restructuring, potentially cutting production capacity from 10 mln to 9 mln vehicles, eliminating up to 100,000 jobs and reducing its factory and model portfolio. Some German plants may be closed or significantly downsized.
(pb.pl)
