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Volkswagen (VWAGY)(VLKAF)(VWAPY) is preparing to end its partnership with automotive supplier Bosch on automated driving technology, according to a report by Germany’s Bild newspaper, as the carmaker intensifies efforts to reduce costs and improve competitiveness.
The collaboration, launched in 2022 between
June 27 (UPI) — Volkswagen is set to cut as many as 100,000 jobs, and end production at four of its plants, as part of a restructuring to better counter Chinese rivals in Europe.
The company is one of several German automakers that is making cuts as Chinese companies gain ground in both Germany and the rest of Europe, The Financial Times and Wall Street Journal reported.
BMW and Mercedes-Benz, as well as Stellantis and Renault, have lost market share in Europe as BYD, Chery and other Chinese brands have surpassed 10% of car sales on the continent after years of slow growth.
Volkswagen already had agreed with its employee’s unions to cut 50,000 jobs in Germany by the end of 2030 as part of making it “more efficient and leaner,” but some experts have questioned whether the increased moves will have their intended effect, the reports said.
“Every European player is losing today,” Thomas Besson, an auto market analyst at Kepler Cheuvreux, told The Times.
“This is a highly challenging situation for European carmakers,” Besson said, “because Chinese [manufacturers] are progressing [in Europe] at a much faster pace than expected, while [European manufacturers] continue to lose volumes in China and face very adverse conditions in the United States, notably due to tariffs.”
Volkswagen, which is Europe’s largest carmaker, would be dropping about 15% of its 660,000-person workforce, in addition to ending production at three Volkswagen plants and one Audi plant, CNBC reported.
The company also plans to reduce investments by about 15% — roughly $148 billion — over the next five years, while also launching new efforts at selling its products to compete with the Chinese companies.
“The entire [Volkswagen] group — including its brands and subsidiaries — must undergo profound change,” a company spokesperson told CNBC.
Sean Gallup/Getty Images News
Volkswagen AG (VWAGY) is considering deeper cost-cutting measures, including eliminating up to 100,000 jobs and closing several factories, as CEO Oliver Blume seeks to improve the automaker’s competitiveness, Manager Magazin reported Friday, citing people familiar with the matter.
According to
Volkswagen Group announced plans to equip new cars for China with AI “agents” starting in the second half of this year. This strategy aims to help Volkswagen compete with fast-growing Chinese automakers in areas like electrification and digital features.
At an event in Beijing, the company revealed that its vehicles will utilize a China-specific electronic architecture to offer “onboard AI agents,” allowing for intuitive, human-like interaction while ensuring personal data protection. These AI agents can perform complex tasks, such as finding top-rated restaurants, making reservations, driving to the location, and organizing parking.
Volkswagen is shifting its image in China, aiming to be seen as a leader in electric and intelligent vehicles rather than just a traditional manufacturer. The company plans to introduce over 20 new electrified vehicles, totaling 50 new models by 2030, as part of its “largest ever electric mobility offensive. “
CEO Oliver Blume emphasized that their initiatives signal Volkswagen’s return to the market. The collaboration with Horizon Robotics aims to make this AI technology accessible across the mass market.
With information from Reuters