VW profits plunge and deep job cuts loom amid tough Chinese competition

Carmaker, which is pushing through cost-cutting programme, expects sales to fall by up to 3% this year

Volkswagen has reported a steep fall in profits and cut its revenue forecast amid a sales slump in China, as the German carmaker pushes through a brutal cost-cutting programme that includes slashing up to 100,000 jobs.

The world’s second-largest maker of vehicles said it expects sales to fall by up to 3% this year, a dramatic reversal on a previous forecast for a 3% increase on last year’s €321.9bn (£275.3bn), because of a sales slump in the highly competitive Chinese market.