Volkswagen Faces Tough Decisions Amidst Market Changes, CFO Warns

Volkswagen's finance chief Arno Antlitz highlighted the urgent need for cost-cutting and productivity improvements. With the European auto market permanently down by 2 million units post-COVID, the company might face plant closures. Antlitz emphasized the importance of optimizing processes and leveraging group synergies.

Volkswagen has been given a time frame of one to two years to rectify its main car brand or risk significant consequences, according to its finance chief, Arno Antlitz, on Wednesday.

Addressing staff at Volkswagen's Wolfsburg headquarters, Antlitz said, "We have been spending more money at the brand than we earn for some time now. That doesn't go well in the long term. If we carry on like this, we won't succeed in the transformation."

Europe's automotive market has shrunk by 2 million units since COVID, affecting Volkswagen's sales by 500,000 cars. Antlitz emphasized the need to improve cost efficiency, productivity, and reduce the complexity of processes to navigate these challenges.

(With inputs from agencies.)