Volkswagen shares surge as board approves 50,000 more job cuts

Volkswagen shares surged roughly 6% to 7% after the automaker’s supervisory board approved a sweeping restructuring plan designed to address weak profitability, falling Chinese sales, intense competition from Asian manufacturers and higher U.S. tariffs. The plan includes 50,000 additional job cuts, bringing total planned reductions to 100,000, along with efforts to halve the company’s vehicle lineup and reduce excess production capacity at four German plants. Volkswagen’s operating margin and first-half profit have declined sharply, underscoring the pressure facing Europe’s largest automaker. Investors welcomed the agreement because it overcame resistance from employee representatives and Lower Saxony, though labor groups have opposed the changes and the future use of some factories remains uncertain. The decision also helped lift broader German stocks, alongside stronger-than-expected factory-orders data, although geopolitical risks and possible European Central Bank rate increases limited gains.