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in the fierce market environment, volkswagen china also needs to reduce costs and increase efficiency.

on september 23, market news said that volkswagen china planned to carry out phased layoffs, and it was expected that hundreds of local employees would be laid off at the group level.

in response to this, volkswagen china responded to the reporter of the paper that in 2023, volkswagen group launched a performance plan in all its brands to maintain success in the challenging industry situation. the group has set a clear goal: to increase efficiency by 20% by 2026. like all other departments, volkswagen group (china) actively participates in and supports the global performance plan. specific measures include adjusting the organizational structure, improving the digital level of work processes, strengthening the coordination between brands and departments in china, and strengthening the localization of projects.

volkswagen said that in this context,volkswagen group (china) is continuously improving the efficiency of various departments and projects and optimizing costs. according to the actual situation, relevant measures also involve direct labor costs and indirect labor costs including administrative expenses, travel expenses and training costs.。

against the backdrop of electrification transformation, volkswagen, a traditional fuel vehicle giant, is facing considerable challenges.

according to foreign media reports, volkswagen group is planning to lay off 30,000 employees in germany in order to become more competitive in the european auto market. among them, the largest layoffs will be in the r&d department, where it is expected that up to 6,000 of the 13,000 r&d personnel will be laid off.

previously, volkswagen even made a historic decision to consider closing two factories in germany.

on september 2, local time, volkswagen said it was considering closing a car factory and a parts factory in germany to cut costs. it is reported that this will be the first time in volkswagen's history that a german factory has been closed, which means that it will abandon its promise not to lay off employees before 2029.

the latest financial report shows that volkswagen's revenue in the second quarter of 2024 was 83.34 billion euros, a year-on-year increase of 4.1%; operating profit was 5.46 billion euros, a year-on-year decrease of 2.4%; global sales were 2.244 million vehicles, a year-on-year decrease of 3.8%.

volkswagen said in its financial report that sales growth in north america and south america almost offset the impact of declines in other regions, especially the chinese market.

volkswagen has lost its dominant position in the chinese market.

in the first half of this year, volkswagen sold 1.345 million vehicles in china, down 7.4% year-on-year, due to "fierce competition in the chinese market." in terms of market share, china accounts for 30.9% of the global total sales. at its peak, china has always contributed 40% of volkswagen's global market share.

in addition, volkswagen has also lost its dominant position in the chinese automobile market for many years. byd sold more than 1.6 million vehicles in the first half of the year, surpassing volkswagen to become the sales champion. judging from the full-year forecast, this situation is difficult to reverse.

volkswagen's failure in the chinese market is related to its slow electrification transformation. but in fact, among joint venture automakers, volkswagen is considered to be the fastest in transformation, and its id series sales have been rising in the past two years, but chinese independent brands have a greater first-mover advantage in the field of smart electric vehicles.

now, volkswagen group is making up for its shortcomings by strengthening local cooperation.

last year, volkswagen group officially announced that it would fully participate in the booming chinese electric vehicle market through cooperation between the volkswagen brand and xiaopeng motors, and the audi brand and saic group.

among them, volkswagen and xiaopeng motors reached a technical framework agreement to jointly develop two volkswagen brand electric models, which are planned to enter the market in 2026. volkswagen group acquired approximately 4.99% of xiaopeng motors' equity. audi and its chinese joint venture partner saic motors jointly developed a portfolio of intelligent connected electric vehicles for the high-end market. as the first step of the plan, audi will enter the market segments that have not been covered in china before by launching new electric models.