Volkswagen reported a sharp drop in profits in the third quarter of 2024 due to problems in the Chinese market. The operating result decreased by 42% to €2.86 billion, and profit after tax fell by 64%.

The group's profit fell by 64%, partly because VW is doing poorly in the important Chinese market.

Writes UNN with reference to Neue Zürcher Zeitung.

In the third quarter of 2024, Volkswagen suffered a significant drop in profits.

As reported by the DAX Group, the operating result fell by 42% to 2.86 billion euros. Due to Volkswagen's poor performance in China, the group's profit after tax fell by 64% to €1.58 billion. On the other hand, sales fell by only half a percent to 78.5 billion euros.

According to the company, in nine months, the sales profitability of the main Volkswagen brand will be only 2%.

“This shows the urgent need for significant cost reduction and efficiency gains,” explained VW CFO Arno Antlitz.

Recall

UNN reported that Europe's largest car manufacturer , Volkswagen, plans to close at least three German plants, cut tens of thousands of jobs and reduce wages by 10 percent, a senior company official said on Monday.

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