VW carmaker is in decline

Blume considers shuttering factories in the country for the first time.

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Volkswagen (VW) AG's second profit warning in three months makes one thing clear: Europe's biggest automaker is in decline.

The German manufacturer last Friday slashed expectations for revenue, profit and cash flow due to waning demand for its cars. The company now expects to deliver fewer vehicles this year than last year its fourth annual sales slump in five years.

The warning underscores the extent of the crisis at VW, which has bungled a transition to electric vehicles (EVs) and lost relevance in China, where its VW, Audi and Porsche brands are haemorrhaging market share.

In Europe, CEO Oliver Blume faces new entrants, including China's BYD Co, as well as a conflict with unions over possible job cuts and unprecedented plant closures.

VW's stock declined as much as 2% in Frankfurt, taking this year's drop to 15%.

Shares of Stellantis NV and Aston Martin Lagonda Global Holdings also fell after the carmakers cut their forecasts last week.