Searching ways to combat China | Northwest Arkansas Democrat-Gazette

Volkswagen’s search for ways to combat China is driving a push for deeper cost cuts, according to CEO Oliver Blume. After a mixed quarterly earnings report, Blume said the German automaker must remain competitive as Chinese brands increasingly focus on Volkswagen’s home market, with more than 150 rivals mentioned in China and spreading into Europe. He proposed doubling previously agreed job cuts to 100,000 and cautioned that four German plants face potential closure after 2030. The CEO said stakeholders understand the risks, but his full restructuring plan was not approved at a supervisory board meeting earlier in the month, restarting negotiations with unions following late-2024 talks that secured the first 50,000 cuts. Analysts cited stabilization in the second quarter, yet Volkswagen reported operating profit down 9.5% to $3.98 billion and revenue around $93.8 billion. While the operating margin stayed within the 4.0%–5.5% target range, at 4.2% in Q2, the group expects revenue to fall by up to 3% in 2026. Shares declined as much as 3.2% after results, as Chinese makers expand in Europe via low-cost electrics and plug-in hybrids.