Reuters had access to a message published on Volkswagen's intranet site in which brand chief Thomas Schaefer admitted partial and early retirements are planned.
So many annoying headlines like this lately with CEOs whining about the current state of the market as if we should feel bad for them.
Schaefer isn’t whining. Did you even read the article? He said that internally to gain support for the savings program.
They’ve been sitting fat and happy despite knowing the market would be changing, for better or for worse.
I don’t actually know the profit margin or investments that VW did over the past 6 years (as if that would reflect current offerings anyways), but it sounds like you don’t know either.
Short answer: They’re profitable (In the billions), but on a company that big their profit margins are very slim, about 7%.
People see a profit of 16-20 Billion and think the company must be rolling in it, but as a percentage they’re not doing great and I can see why the CEO is concerned.
Schaefer’s actually talking about the Volkswagen brand, which is even worse, at around 3% — Audi and Porsche are doing fine, but they’re being dragged down by Volkswagen. A bigger problem for Volkswagen right now is they invested wildly into EVs, and are now having trouble justifying those expenses while their AV and SDV efforts flounder. Not long ago the committed figure was a staggering $193B for all three, which means they have a lot of cars to sell.
You’re very right - I did read the article (surprisingly) but was sort of just venting frustration over how many similar headlines I’ve read lately. It was less about the VAG boss in particular.
I do feel bad for all the folks that will likely be laid off due to their inability to bring something competitive to market.
Schaefer isn’t whining. Did you even read the article? He said that internally to gain support for the savings program.
I don’t actually know the profit margin or investments that VW did over the past 6 years (as if that would reflect current offerings anyways), but it sounds like you don’t know either.
Short answer: They’re profitable (In the billions), but on a company that big their profit margins are very slim, about 7%.
People see a profit of 16-20 Billion and think the company must be rolling in it, but as a percentage they’re not doing great and I can see why the CEO is concerned.
Schaefer’s actually talking about the Volkswagen brand, which is even worse, at around 3% — Audi and Porsche are doing fine, but they’re being dragged down by Volkswagen. A bigger problem for Volkswagen right now is they invested wildly into EVs, and are now having trouble justifying those expenses while their AV and SDV efforts flounder. Not long ago the committed figure was a staggering $193B for all three, which means they have a lot of cars to sell.
Yeah 3% is bad, as in a slight change of the prime rate and you’re bankrupt bad. I’m not surprised they’re in cutback mode.
What do you mean by AV and SDV?
You’re very right - I did read the article (surprisingly) but was sort of just venting frustration over how many similar headlines I’ve read lately. It was less about the VAG boss in particular.
I do feel bad for all the folks that will likely be laid off due to their inability to bring something competitive to market.