The carmaker has been in heated discussions with unions after announcing this fall that it would have to take drastic measures to cut costs
The carmaker has been in heated discussions with unions after announcing this fall that it would have to take drastic measures to cut costs
Wait what I thought VAG was unprofitable and has been for a while?
Not unprofitable.
They just set impossible profit expectations and doing everything to reach them to keep shareholders happy.
So even if they are making record profits, they’re still not meeting the expectations they set. And that’s bad for investors.
I checked and they have over 200 billion in debt. The debt has been steadily growing since 2008 so no wonder someone wants see results. If they stop innovating and taking debt they most likely die so it’s not a good situation to be in.
Based on their Q3 2024 Financial Report (p. 23):
So ya, they are plenty profitable. The line just isn’t going up this year. Time to cut jobs.
https://companiesmarketcap.com/volkswagen/total-debt/
Sales slowing and “Total debt on the balance sheet as of September 2024 : $219.94 Billion USD”
I don’t think the point of negative profit isn’t too far with these numbers, especially if sales keep going down. They keep taking on more debt than they make profit for many years.
What are you talking about? Over the last 10 years, there was only one year when they weren’t profitable (2015, 1.58 billion euros loss after they had to defer more then 16 billion euros because of their diesel shenanigans), every other year they were making billions. In fact, only in '16 and '20 were they “only” in the single digit billions, the remaining 7 years they made 10+ billions in profit, with the most recent year '23 being a record year in both, revenue (322 billion euros) and profit (16 billion euros).
Their debt is being paid and then some. This is not an issue.