Volkswagen faces its worst financial crisis since Dieselgate, plans major restructuring
By Areeb Khan
Volkswagen is facing mounting financial pressure due to US tariffs, declining sales in China and rising competition from Chinese automakers in Europe. With electric vehicles generating lower margins than combustion-engine model, the German automaker plans a €31 billion cost-cutting programme focused
Volkswagen Group ki latest financial reports se pata chalta hai ki company iss time ek saath three major problems face kar rahi hai. First US tariffs ka pressure hai, second Chinese market mein company ki position weak ho rahi hai, or Third is Chinese manufacturers bhi ab European market mein enter kar rahe hai. Europe mein already strict regulations or factories ki overcapacity ki wajah se automotive industry kaafi complicated situation mein hai, or abb Chinese brands ki entry se competition or bhi increase ho raha hai. Company ke financial results ki baat karein so, last quarter mein Volkswagen Group ko approximately €5.9 billion ka operating loss hua. However, yahan profit ke figure ko lekar ek clarification important hai: source mein mention kiya gaya €233.4 billion ka figure likely revenue ho sakta hai, profit nahi, isliye original financial report se ise verify karna chahiye. Is situation ka matlab hai ki Volkswagen group ka yeh financial result Dieselgate scandal ke end of 2015 ke baad se most worst hai. Us time scandal ke baad company ko millions of euros allocate karne pade the, or iska impact sirf Volkswagen tak limited nahi raha, rather butterfly effect ki tarah all over European automotive industry par bhi dekhne ko mila. Abhi ki situation par yeh hai ki group ke financial results par around 8 billion euros ke extraordinary expenses ka impact pada hai. Iska ek major reason Porsche mein Volkswagen ki stake ki value mein depreciation hona hai. Volkswagen Group ke CFO, Aron Antlitz ne bhi is situation ko openly acknowledge kiya hai.
The Volkswagen Group is still in a challenging position Antliz ne highlight kiya hai ki company ke electric vehicles ka return on investment abbhi bhi combustion engine vehicles ke comparison mein low hai. Ismein hybrids or plug-in hybrids bhi include kiye jaate hai. Abb interesting baat yeh hai ki electric vehicles currently company ke total order book ka around 40% part hai, jo ki around 1,50,000 vehicles ke around hai. Despite the Europe's biggest or world largest Toyota ke baad second-largest car manufacturer, caompany ke liye electric vehicles se utna return generate kar pana abhi bhi ek challenge bana hua hai. Small cars ki baat karein so typically inmein large cars ke comparison mein profit margins kaafi low hote hai. But Volkswagen abhi woh achiieve nahi kar paa raha hai jo Renault ne kiya hai. Renault apni small electric cars, jaise ki Renault 5 E-Tech or Twingo E-Tech, ko larger models ke comparison mein more profitable banane mein successful raha hai. Their gasoline powered cars make more money than electric ones. Antlitz ka kehna hai ki company ab ek bhi second waste nahi kar sakti or usse jaldi or decisive action lena hoga. Europe mein company electric mobility ke field mein pioneers mein se ek hai, jahan electric vehicles ab uske total order book ka 40% represent karti hai. Ismein comapny ki electric city cars ka bhi kaafi large contribution hai, jinhe ab tak 1,50,000 orders mil chuke hai. But other side, US tariffs company ke liye ek heavy burden ban rahe hai, Chinese market mein demand shrink ho rahi hai or Europe mein bhi competition kaafi rapidly increase ho raha hai.
In these nine months group ka operating return, special items ko exclude karne ke baad, 3.8% raha hai. Group ke CTO or COO khud bhi admit karte hai ki yeh figure kaafi low hai, and actually dekha jaaye so yeh hai bhi, because apni market leadership ko maintain karne ke liye company ko at least 5% operating return achieve karna hoga. Isse hi woh apni technological development ko continue kar paayenge. Is target ko achieve karne ke liye Antlitz factories ki efficiency improve karne par focus kar rahe hai, so that production process ko or efficient banaya jaa sake. Other than this, development time ko reduce karne ki bhi planning hai, because kisi bhi new technology ya model ko develop karne mein jitna less time lagega. utna hi development cost reduce kiya jaa sakta hai. Saath hi, group ke different brands ke models lineup ko simplify karne par bhi work kiya jaa raha hai, so that overall costs ko control mein rakha jaa sake. In the future, their model lineup will be more simplified Apne future plans ke saath, Volkswagen Group ne kuch key measures defin kiye hai jinke through company apni profitability ko sustainably improve karna chahti hai. Iske liye model range ko or streamlined banaya jayega, company ke internal structures ko simpler kiya jayega, vehicle costs or overhead costs ko reduce kiya jayega. Other than this, plants mein efficiency improve karne or technological development ko faster banane par bhi focus kiya jayega. Antlitz ke according, yeh saare measures ek comprehensive cost-cutting programme ka part hai, jiske under company around €31 billion ki cost reduction achieve karne ka target rakh rahi hai. Full year ke liye expectation yeh hai ki Volkswagen Group ka operating return 1% rahega, whereas cash flow €3 billion se €6 billion ke between rehna expected hai. But yeh tabhi possible hoga agar aage koi additional geopolitical complications nahi aati hai, jaise ki United Satesmein exports par new tariffs lagna. Is issue ko address karne ke liye Volkswagen Group ek new Audi factory Georgia mein establish kar raha hai, but is factory ke aane se kuch other challenges bhi create hue hai. News Source: Motor.es