VW Lowers Margin Target, Emphasizes Natural Attrition for Job Cuts
Volkswagen (VWAPY) has revised its margin target for the VW passenger car brand to a more realistic 6% in the "medium term," according to a note from Bernstein Research. The automaker previously aimed for a 6.5% margin by 2026.
In a recent investor call, VW executives discussed a cost-cutting agreement with unions involving workforce reductions of 35,000 by 2030. They stated that 24,000 of these job cuts would be achieved through natural attrition and early retirement.
Analysts noted that VW's call was more optimistic than Porsche's the previous evening, despite Porsche executives warning of challenges in 2025. VW also reported a slightly larger order book in Western Europe than before the pandemic, totaling approximately 850,000 units.
The automaker expects to incur expenses of around €1.5 billion for non-compliance with EU emissions targets.