In the third quarter, Volkswagen's profit drops by 42% due to extensive restructuring initiatives.

• While third quarter sales revenues decreased by 0.5% year on year to approximately 78.5 billion euros, the operating profit of the company fell to 2.86 billion euros ($3.1 billion).
• Volkswagen cut its 2024 annual outlook for the second time in a few months, and the third quarter results will be released after that announcement.
• In recent months, Volkswagen has faced challenges, including potential plant closures in Germany and the cancellation of labor agreements with local workers in September.

On Wednesday, Volkswagen reported a 42% decrease in operating profit during the third quarter.

While third quarter sales revenues decreased by 0.5% year on year to approximately 78.5 billion euros, the operating profit of the company fell to 2.86 billion euros ($3.1 billion).

In the third quarter of 2024, Volkswagen reported a 8.3% decline in vehicle sales compared to the same period in the previous year.

The Volkswagen Group's net liquidity was negative 160.6 billion euros at the end of September 2024, compared to negative 147.4 billion euros at the end of 2023.

The car maker, Volkswagen, cut its 2024 annual outlook for the second time in a few months, and now expects a profit margin of around 5.6% for the year, along with a 0.7% drop in sales.

In recent months, Volkswagen has faced challenges, including potential plant closures in Germany and the termination of several labor agreements with local workers in September. Additionally, the company announced that it would no longer maintain its employment protection agreement, which has been in effect for its German workforce since 1994.

The Volkswagen works council announced on Monday that the company's management was planning to implement widespread pay cuts, layoffs, and plant closures or size reductions across all of its German facilities.

Volkswagen emphasized the necessity of restructuring and announced plans to discuss cost cuts during labor agreement negotiations on Wednesday.

This breaking news story is being updated.