Zhejiang Geely Holding Group vs Volkswagen

Geely Holding Group and NIO Deepen Strategic Cooperation in Battery Swapping and Charging

Zhejiang Geely Holding Group Co., Ltd. (ZGH) and NIO Holding Co., Ltd. (NIO) have entered into a comprehensive strategic cooperation in charging and battery swapping. The two sides have reached broad agreement on cooperation across technology, operations and capital, and will jointly invest in their charging and battery-swapping businesses, share technologies and standards, and develop a shared service network.

Volkswagen posts 5.8 billion euro loss in third quarter

Volkswagen is heading towards its first annual net loss since the diesel scandal, driven by a €5.8 billion net loss in Q3 2026. Key factors include a €6.4 billion goodwill impairment on Porsche, a €1 billion write-down on Chinese subsidiaries, restructuring costs, and margin pressure from the shift to electric vehicles. Revenue fell 6.3% to €75.3 billion, and deliveries dropped 14.3% overall, with a sharp 38.5% decline in China. Sales in China fell over 30% to 1.38 million vehicles in the first nine months. The company lowered its full-year operating margin forecast to at most 1%, down from 4.0-5.5%, and expects special costs of around €10 billion. Excluding special effects, operating profit would have been €8.8 billion, with net cash flow more than doubling to €4.4 billion. A €31 billion cost-cutting program is planned, but restructuring strategy remains disputed.

• Volkswagen reported a net loss of €5.8 billion in Q3 2026.
• The loss includes a €6.4 billion impairment on Porsche and a €1 billion write-down on Chinese assets.
• Third-quarter revenue fell 6.3% to €75.3 billion, and deliveries dropped 14.3% overall, with a 38.5% decline in China.

German Companies Cut Thousands of Management Jobs

German corporations are eliminating thousands of management positions, particularly in the middle management layer between C-suite and operational business. Volkswagen plans to cut about 5,000 of its 21,500 management roles worldwide, BMW is reducing leadership levels, and BASF has already shed 11% of its managers in the past two years. In 2025, a record 49,000 executives were unemployed. Bayer CEO Bill Anderson is spearheading a radical restructuring, aiming to eliminate up to 12,000 of roughly 17,000 leadership positions by flattening the corporate hierarchy from twelve levels. This trend is driven by weak economic conditions, high transformation costs, and a desire for leaner, faster organizations. Affected managers face not only financial uncertainty but also loss of status and identity, and re-entering the job market is challenging as companies now prioritize operational experience, technology skills, and change management capability.

• Volkswagen plans to cut approximately 5,000 of its 21,500 management positions worldwide.
• BASF has reduced its leadership workforce by 11% over the past two years.
• A record 49,000 executives were registered as unemployed in Germany in 2025.

Audi Restructures China Leadership with New Dual Board

Audi is replacing its China leadership amid declining sales in the region. Jeff Zhang will become President of Audi China from November 1, succeeding Johannes Roscheck, who is returning to Ingolstadt. Additionally, Rolf Michl, currently CEO of Audi Sport GmbH, will move to China as Chief Operating Officer, creating a dual leadership structure for the China board. Audi's struggles in China are deepening, with projected sales of under 420,000 vehicles in 2026, about 30% lower than 2025, marking the weakest performance since 2012. Imports of models like the A8 and RS models from Germany have nearly halted. Audi's operating profit is also expected to miss targets, with the Brand Group Progressive posting only €1.1 billion in the first half. These moves are part of broader restructuring efforts, including partnerships with Huawei, XPeng, and Saic, to revitalize operations in China.

• Jeff Zhang becomes President of Audi China from November 1, replacing Johannes Roscheck.
• Rolf Michl, CEO of Audi Sport GmbH, moves to China as COO, creating a dual leadership structure.
• Audi China sales projected below 420,000 vehicles in 2026, down 30% from 2025, the weakest since 2012.