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Volkswagen CEO's Speech to Workers Drowned Out By Boos After He Says Company 'Isn't Operating in a Fantasy World' (www.latintimes.com)

submitted 1 month ago by [email protected] to c/[email protected]

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The carmaker has been in heated discussions with unions after announcing this fall that it would have to take drastic measures to cut costs

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[–] cyborganism 24 points 1 month ago (4 children)

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.

[–] [email protected] -3 points 1 month ago (3 children)

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.

[–] [email protected] 19 points 1 month ago (1 children)

Based on their Q3 2024 Financial Report (p. 23):

The Volkswagen Group generated sales revenue of €237.3 (235.1) billion in the period from January to September 2024.

The Volkswagen Group’s operating result amounted to €12.9 (16.2) billion in the first nine months of 2024. The operating return on sales was 5.4 (6.9)%.

So ya, they are plenty profitable. The line just isn't going up this year. Time to cut jobs.

[–] [email protected] 1 points 1 month ago

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.

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