Volkswagen's third-quarter profits plummet 42%!

Volkswagen reported on Wednesday that its operating profit dropped sharply by 42% in the third quarter. The main reasons for this result are the poor performance of the core passenger car division and the cost increase caused by model changes. So far, the operating sales return rate of the core division for the first nine months is only 2%. In response, Volkswagen's CFO, Arno Antlitz, said "This shows that we urgently need to significantly reduce costs and improve operational efficiency."

Analysts point out that the challenges Volkswagen faces are multi-faceted, including complex corporate governance structures, mistakes in investment in electric vehicles, poor leadership decisions, declining revenues in the Chinese market, and Germany's stringent bureaucracy. As Europe's largest automaker, Volkswagen has twice reduced its full-year performance expectations this quarter, and its competitors BMW and Mercedes-Benz are also in a similar predicament.

To cope with the severe situation, Volkswagen is undergoing major reforms, including the possible closure of some German factories, but this move has sparked strong opposition from the union, and both parties are currently in tense negotiations.