Volkswagen's parent company, Porsche SE, has reported significant financial losses, signaling tough times for the German auto giant.
The company’s after-tax profit dropped by a third compared to the previous year, now standing at $2.73 billion USD. Although still profitable, this figure represents a sharp decline from 2023, according to reports from Boosted.
Porsche SE, which also holds stakes in Flix, the German bus company, and ABB E-mobility, a Swiss manufacturer of charging stations, revealed its financial results last week.
The company announced support for planned cost-cutting measures at Volkswagen, including a 10% wage reduction for lower-level employees.
Not Alone
Volkswagen is not alone in facing challenges. Other automakers are also grappling with economic slowdowns.
Stellantis, the American-European conglomerate, is under financial pressure, while Nissan’s CEO has taken a 50% pay cut due to the severity of the company’s struggles.
Even electric vehicle manufacturers are feeling the strain. Ford’s EV division, Model e, loses more than $35,000 for every car it produces.
In Europe, Ford has scaled back EV production as demand falls. Factories have been forced to send workers home due to a lack of tasks, despite the company investing 2 billion kroner in plant upgrades specifically for EV manufacturing.
Rivian, another American EV maker, is also burning through cash. Recent losses nearly match Ford’s, and the company has faced additional setbacks, including a massive fire that destroyed several vehicles.
Despite the bleak outlook for many automakers, not all companies are in decline. One brand has seen such rapid growth that it hired 200,000 new employees in just three months.
