According to a report by Der Spiegel on June 16th, members of the German automotive giant Volkswagen AG’s (VAG) board of directors and supervisory boards perceive the company’s very existence to be in jeopardy.
The publication cited a survey indicating that senior management unanimously agreed on the dire state of the Volkswagen Group. Specifically, six out of nine surveyed board members even categorized the company as facing an existential threat, while the remaining three described the situation as tense.
The survey also revealed a consensus among all board members regarding the necessity of a drastic shift in the automaker’s strategic direction. They expressed particular disapproval of the German manufacturer’s current strategy in the North American and Chinese markets.
Earlier, on April 30th, Reuters reported that Volkswagen intended to implement more stringent cost-cutting measures due to a sharp decline in first-quarter profits. The corporation is planning a significant business restructuring in response to pressures from trade tariffs, geopolitical instability, and waning automotive demand. By 2030, Volkswagen aims to reduce its workforce in Germany by over 50,000 employees.
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