Share
Explore BrainMass

Cost Change at Volkswagen

See attached article. Based on the article:

What does the cost change mean for this firm in terms of the firm's output and profits?

Attachments

Solution Preview

The response address the queries posted in 688 words with references.
//After reviewing the attached article; first, we will describe the meaning of 'Cost Change'. The Company in the article is Volkswagen. We will also discuss the meaning of cost change in terms of output and in terms of profit of the firm. The analysis of the financial results will also help to understand the cost change.\

Cost Change at Volkswagen

This article reveals that the company Volkswagen has incurred a significant loss on cars exported from Germany to the USA. So in order to ensure a secure long-term future for the group, the company is undergoing restructuring program because the company wants to save money so that it can ultimately spend more money for developing new models for American buyers. In the U.S., the company has only 1.5% of the market. In line with this restructuring program, the company pursued early retirements and divesting or spinning off component groups along with few direct layoffs.

Layoffs, I.e., reducing the number of employees have become very common in the business rather than acquiring them. This concept of layoff came ...

Solution Summary

The response address the queries posted in 688 words with references.

$2.19