Volkswagen’s board fears existing cuts insufficient for brand revival, report says

Published 30/01/2025, 08:24
© Reuters.

Investing.com -- Volkswagen (ETR:VOWG_p)’s board members are increasingly worried that the extensive reductions agreed with the company’s unions late last year may not be sufficient to revitalize the carmaker’s flagship brand, according to a report by Handelsblatt on Thursday.

The report, which cites sources familiar with the situation, indicates that the board anticipates the need for additional cost-saving measures beyond the previously agreed job cuts.

Furthermore, Handelsblatt reported that Volkswagen is planning to delay its profitability target.

The company now aims to achieve a 6.5% profit margin within three to four years, rather than by the end of next year as initially planned.

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