Group Boss Admits The Real Problem: Its Cars Aren't Profitable Enough

Ford’s profit explanation and cost pressures are used as a parallel for what the Volkswagen Group is preparing in 2026, as CEO Oliver Blume told the German newspaper Bild that the issue is profitability rather than lack of demand. Blume said VW’s products are popular, but the group is “not making enough money,” adding that costs must be reduced across categories to improve margins. Bild reports that up to 120,000 jobs could be cut, around a fifth of the workforce, while the company has already announced a plan to cut complexity by effectively halving its product portfolio. The group aims to eliminate up to 50% of models across VW’s brands, and reduce options for remaining models by as much as 75%. VW also plans to cut annual production capacity by 9 million vehicles, though factory closures were not confirmed. Reports allege risks at Zwickau, Emden, Hanover, and Neckarsulm. Skoda said its plants are running at full capacity with no immediate operational impact.