Massive drop in profits at Volkswagen

The crisis at VW is now also emerging in the business figures: in the third quarter, the profit broke out by almost 64 percent. VW sells fewer vehicles, and the austerity course also costs money.

The troublesome Volkswagen Group suffered a bitter drop in profits in the third quarter.

Fewer vehicle sales as well as the initiated capacity and job cuts in the group ensured a billion dollar pollution. The values were weaker than feared by analysts anyway.

After taxes, the group win dropped by 64 percent to 1.58 billion euros – including because VW is also doing badly in the important market of China. In contrast, sales fell only by half a percent to 78.5 billion euros.

Management around CEO Oliver Blume maintained the annual forecast reduced again in September. Blume has set the red pencil in the group and wants to save billions in order to get the core brand VW car back on trot in particular.

Factory closures and job cuts

VW is in a severe crisis. The car manufacturer has announced that it was closing works in Germany for the first time in history. According to the works council, it is about at least three works and massive employment reduction.

Tens of thousands of employees could be terminated. There are also significant drops in the room. The employees have announced bitter resistance and require more extensive recipes than just taking into account the work and factory costs.

Today, companies and union IG Metall meet for the next round of talks for the VW house tariff.