WASHINGTON (dpa-AFX) - Volkswagen AG (VOW.BE) has maintained its financial outlook for fiscal 2026 even as Chief Executive Oliver Blume warned employees that the automaker may ultimately need to eliminate around 50,000 more jobs to strengthen its competitive position, according to an internal memo reviewed by Reuters.
The company continues to forecast sales revenue growth of 0 percent to 3 percent from EUR 321.9 billion in 2025. It expects an operating profit margin of 4.0 percent to 5.5 percent, up from 2.8 percent last year.
Volkswagen also projects an automotive investment ratio of 11 percent to 12 percent, automotive reported net cash flow of EUR 3 billion to EUR 6 billion, and automotive net liquidity of EUR 32 billion to EUR 34 billion.
In the memo, Blume said Volkswagen currently faces a cost disadvantage of about 20 percent compared with competitors. After previously agreeing to cut around 50,000 jobs across the group, including at Porsche and Audi, he said this points to a 'theoretical' need for another 50,000 job reductions globally, although the company has not yet decided on the final scale of any further workforce changes.
Volkswagen is restructuring its operations as it deals with higher tariff costs, fierce competition in China and the need to improve efficiency across its German factories.
Blume said the company is considering alternatives to plant closures, including defense related production and building Chinese Volkswagen models in Europe, while noting that several German plants still do not have confirmed production plans beyond the end of this decade.
The automaker added that its 2026 guidance reflects the current tariff environment but does not account for any further escalation of tensions in the Middle East or major asset sales.
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