Volkswagen profit falls 14%

Volkswagen AG has warned that its future is at risk without significant structural changes following a disappointing first-quarter earnings report.

The German auto giant saw its operating profit plunge 14% to 4.59 billion euros, hampered by supply chain bottlenecks and a sharp decline in sales of electric vehicles in the U.S. and China.

Management has announced plans to intensify cost-cutting measures, including potential job reductions and a reduction in capital expenditures.

The results underscore the challenges facing legacy automakers as they navigate a volatile transition to a low-carbon economy.