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Volkswagen sales plunge as German automaker lays out plan to slash number of brands
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- Volkswagen reported an 8.6% decline in group sales for the second quarter, with total deliveries just under 2.1 million vehicles and a sharp drop of over one-third in China sales.
- The company announced plans to reduce its model lineup by nearly half as part of a "fundamental realignment" aimed at increasing speed, competitiveness, and reducing complexity amid a challenging environment.
- Sales at core Volkswagen, Audi, and Porsche brands fell significantly, while Lamborghini, Skoda, and the trucks division saw sales growth, particularly in the Americas and Europe.
- Volkswagen cited geopolitical tensions, rising tariffs, regulatory pressures, and intensified competition, especially in China, where the company had previously invested heavily in electric vehicles.
- Following the announcement, hundreds of employees protested at the Zwickau plant, expressing concerns over job security amid plans to close the factory despite its full transition to electric car production.
