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Shares of  Mobileye Global  (ticker:  MBLY ) soared on Tuesday, rising  5.1%  to  $16.02  after the company revealed it would be working with  Volkswagen  (VW) and parts supplier  Valeo  to enhance advanced driver-assistance systems (ADAS) up to  Level 2+ . The new collaboration is aimed at upgrading Volkswagen's systems, which already include features like lane-keeping assistance, adaptive cruise control, and automatic braking. Level 2+ systems are considered more advanced than Level 2 but still require full driver attention. The long-term goal for automakers and suppliers like Mobileye is to evolve these technologies to a point where cars can handle more driving tasks autonomously, reducing the need for driver intervention. The news is a positive for Mobileye, as it continues to compete in the autonomous-driving sector against other tech giants like  Alphabet's Waymo  and  Tesla . Mobileye’s collaboration with ...

Volkswagen CEO Oliver Blume clashed with labour leaders during a heated staff meeting at the company’s Wolfsburg headquarters on Wednesday. The meeting, attended by around 20,000 workers and German Labour Minister Hubertus Heil , highlighted growing tensions over management’s push for cost-cutting measures amid escalating competition, particularly from China. The Dispute Blume called for urgent action to address price pressures and rising competition, emphasizing that plant closures and wage reductions are necessary to secure Volkswagen's future in Germany. "The current situation is serious. New competitors are entering the market with unprecedented force. The price pressure is immense," Blume said, citing challenges in China , the company’s largest and most profitable market, where Volkswagen has recently lost ground. However, union leaders and workers see these proposals as red lines and have threatened further strikes if closures remain part of wage negotiations. Wo...

Volkswagen CEO Oliver Blume stated that the automaker's new cost-cutting measures are essential to address “decades of structural problems,” especially as demand in Europe slows and profits from China drop. In an interview with Bild am Sonntag , Blume highlighted that the high operating costs in Germany are a significant barrier to competitiveness. Last week, VW requested its workers accept a 10% pay reduction to maintain jobs and stay competitive. Reports also indicate plans to shut down at least three plants in Germany , downsize others, and potentially lay off thousands of employees, though VW has not confirmed these steps. Blume noted that while the methods for reaching cost-cutting goals might be flexible, the goals themselves are firm. Volkswagen has allocated approximately €900 million in its budget to implement these changes.

Volkswagen AG, Europe’s largest automaker, is planning to shut down at least three factories in Germany as part of a sweeping cost-reduction effort , according to the company’s top labor leader, Daniela Cavallo . These cuts are aimed at making the company more competitive amid declining demand in Europe and increased competition from Chinese automakers like BYD . In addition to the closures, VW plans to implement universal pay cuts of 10% for employees at the main VW brand and reduce the scale of operations at all other remaining sites in Germany. The measures will include reducing products, quantities, shifts , and entire assembly lines , Cavallo said during a speech to VW workers in Wolfsburg. “This is starvation, a weakening in installments,” she added, expressing concern that these cost-cutting moves would significantly affect the workforce. Cavallo also warned that this could threaten “tens of thousands” of jobs in Germany, with particular impact on the Osnabrück factory, as P...

The four German states where Volkswagen operates — Lower Saxony, Saxony, Hesse, and Berlin — have pledged to work together to prevent the struggling automaker from shutting down any of its factories , according to a joint position paper from the states' economy ministries. The ministries emphasized that the number one goal is to fully preserve all VW sites , ensuring that no locations are played off against each other. The paper, dated Oct. 10 , underscores the states' commitment to acting in solidarity and close coordination to safeguard jobs and expertise at Volkswagen. The states rejected any plans for harsh cuts that would come at the expense of employees, advocating instead for a renewed long-term contract for job security . Tensions at Volkswagen have escalated as the company faces the potential of factory closures , a first in its history in Germany, putting it at odds with the influential IG Metall union . The automaker recently ended employment agreements at six ...

Volkswagen AG has issued its second profit warning in three months, signaling deepening challenges for Europe’s largest automaker . The company slashed expectations for revenue, profit, and cash flow on Friday due to weakening demand, predicting it will sell fewer vehicles in 2024 than in 2023—marking the fourth sales slump in five years. This decline underscores Volkswagen’s difficulties, particularly its struggles with the shift to electric vehicles (EVs) and its shrinking market share in China , where local competitors like BYD have surged ahead. Volkswagen’s VW, Audi, and Porsche brands are losing relevance, especially in China’s rapidly evolving EV market, while competition from Tesla and Chinese EV makers continues to squeeze profits. In China, once a key market for Volkswagen’s gasoline-powered cars , the company has failed to adapt quickly to the EV revolution , allowing local rivals to gain ground with innovative, affordable models. To counteract this, Volkswagen is cl...

Volkswagen has entered tense pay negotiations with its powerful trade unions under the looming threat of factory closures in Germany, a potential first for Europe’s largest automaker. The discussions, which began Wednesday, could shape the company’s approach to layoffs and cost-cutting measures as it grapples with rising energy and labor costs . The talks are set against a backdrop of high tensions, as the IG Metall union , representing a significant portion of Volkswagen’s workforce, has vowed to resist any attempts at plant closures . These negotiations will also determine new labor agreements for 130,000 VW workers in Germany after the company recently ended employment guarantees at six of its western German plants, which had been in place since the mid-1990s. Volkswagen argues that high operating costs in Germany are hampering its ability to compete, especially with Chinese rivals aggressively targeting the electric vehicle (EV) market in Europe. Arne Meiswinkel, Volkswagen...

Volkswagen announced plans to intensify cost-cutting measures in the second half of the year and beyond to improve its profit margins. The German automaker reported first-half margins it deemed "too low" and is taking steps to address this issue. Key Points: Cost-Cutting Measures: Volkswagen will need to make "significant cost-cutting efforts" to revive its profit margins. The company is reducing production capacity, cutting costs, and adjusting software spending, partly due to its investment in electric vehicle maker Rivian. Factory capacity has already been cut by 25% at certain locations, including the main plant in Wolfsburg, as part of a broader goal to reduce capacity by 10% across Europe. Restructuring measures, such as incentivizing early retirement, will take time to show effects. Financial Performance: Volkswagen is in the midst of a €10 billion (US$10.83 billion or RM49.5 billion) savings drive announced in December, with €4 billion in cuts expected in 20...