Volkswagen Posts Biggest Loss in 12 Years, Warns It ‘Must Act Quickly’ on Costs

Volkswagen, Europe’s largest carmaker, has reported its largest annual loss in over a decade, with a net loss of €8.3 billion for 2024. The company warned it “must act quickly and decisively” to cut costs, signaling deeper restructuring ahead. The loss was driven by massive restructuring charges, including €3.4 billion tied to a landmark agreement with labor unions to cut 35,000 jobs in Germany by 2030. Revenue remained flat at €324.7 billion, while vehicle deliveries fell 3.5% to 9 million units. The automaker faces intense competition from Chinese EV makers, weakening demand in Europe, and high energy and labor costs. CEO Oliver Blume acknowledged that “the environment has become even more difficult,” and the company expects only marginal growth in 2025. Volkswagen is betting on new electric models and a partnership with Rivian to accelerate its software-defined vehicle plans, but analysts warn that execution risks remain high. The coming year will test whether Volkswagen can protect its market share while slashing costs.