Volkswagen board members push for further cuts, Handelsblatt reports

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January 30, 2025 2:03 AM EST

Thomas Schaefer, CEO of the Volkswagen Passenger Cars brand, speaks to the media following collective bargaining negotiations between Volkswagen AG and the IG Metall union, in Berlin, Germany, December 20, 2024. REUTERS/Annegret Hilse/File Photo

BERLIN (Reuters) - Concerns are growing among Volkswagen's board members that sweeping cuts agreed with unions late last year will not be enough to turn around the struggling carmaker's core brand, the Handelsblatt business daily reported on Thursday.

The expectation is that further cost-saving measures will be needed beyond the agreed job cuts, the report said, citing sources familiar with the matter.

Handelsblatt also reported that the company would push back its profitability target, aiming for a 6.5% margin in three to four years, rather than by then end of next year.

A spokesperson for Volkswagen declined to comment on the report.

In December, Europe's top carmaker averted mass strikes with a deal to cut more than 35,000 future job cuts, seeking to regain ground from cheaper Chinese rivals amid weak demand in Europe and a slower-than-expected adoption of electric vehicles.

(Writing by Rachel More, Editing by Miranda Murray)


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