The Volkswagen Group is in the red, and we’re not just talking about this illuminated badge we cherry-picked as the top image. The latest plan to slash costs could ultimately lead to 100,000 layoffs across all brands, one of which may even cease to exist. While a final decision hasn’t been made, a “gradual phase-out of the SEAT brand” is officially under consideration.

 

Meanwhile, the German automotive juggernaut has cut its operating-margin forecast from four to just one percent. Weaker demand in China and rising energy costs have created the perfect storm, further amplified by the meteoric rise of Chinese automakers at home and in many international markets.