Volkswagen’s second profit warning in three months makes one thing clear: Europe’s biggest automaker is in decline.
The German manufacturer on Friday slashed expectations for revenue, profit and cash flow due to waning demand for its cars. The company now expects to deliver fewer vehicles this year than in 2023 — its fourth annual sales slump in five years.
The warning underscores the extent of the crisis at Volkswagen, which has bungled a transition to electric vehicles and lost relevance in China, where its VW, Audi and Porsche brands are hemorrhaging market share. In Europe, CEO Oliver Blume faces new entrants, including China’s BYD, as well as a conflict with unions over possible job cuts and unprecedented plant closures.
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