Wasn’t that a couple of days ago the same VW story?

We must say that the entire industry is in crisis, not just Volkswagen. In China, only three carmaker are profitable (BYD, Xiamoi, Leapmotor), and all three show shrinking profits. This is despite Chinese brands benefiting from tremendous subsidy regulations that have never been available for their global competitors, a cheap workforce through forced labour regimes, which allows them to produce massive overcapacity that Chinese brands then need to sell globally due to a shrinking domestic Chinese market. And not to forget overly long payment terms as suppliers in Chinese value chains often wait up to 10 months for getting paid (the average for European value chains is 5 to 8 weeks).

China’s overcapacity is a decisive reason for the entire sector’s crisis imo.

The cost of cutting the jobs is 16b€? That sounds like quite big severance packages