2024-09-08 12:30:28
Volkswagen is tightening its austerity measures – and is considering plant closures. CEO Oliver Blume is now speaking about the company’s situation.
Following the Volkswagen Group’s announcement that it would intensify its austerity measures with job cuts and possible plant closures at the core VW brand, Group board member Oliver Blume described the poor economic situation at Volkswagen as alarming. The situation at the VW brand is “so serious that we cannot simply let everything carry on as before,” Blume told “Bild am Sonntag”.
“Fewer vehicles are being bought in Europe. At the same time, new competitors from Asia are entering the market with force. The pie has become smaller and we have more guests at the table,” the CEO continued. The entire European car industry is in a very challenging situation, “which has never existed before,” said Blume. “And the economic environment has become even more difficult, especially for the VW brand.”
The group has established profit programs in all brands and companies. At the same time, VW is increasing the prices for many models with petrol and diesel engines (read more here). However, at VW, the cost reductions are currently not enough. “My colleagues, VW boss Thomas Schäfer and Thomas Schmall, are therefore working with their teams on further measures,” added Blume. Schäfer is head of the VW brand, while Schmall is the Chief Technology Officer. The Volkswagen boss did not say what these measures might be.
According to Blume, there will be no clear-cutting: “We are firmly committed to Germany as a location, because Volkswagen has shaped entire generations. We have employees whose grandfathers already worked at Volkswagen. I want their grandchildren to be able to work here too.”
In view of the impending loss in the core brand, Volkswagen’s management announced that it would consider redundancies and plant closures in Germany in order to reduce costs. Read more about this here.
The works council rejects this and accuses management of making serious mistakes. Employee representatives have already suggested a four-day week.
SPD co-chair Saskia Esken also sees the four-day week as a “model,” she told the “Handelsblatt.” When it comes to sustainable personnel concepts, “hub models” also make sense. “This enables employees to switch to another employer and keeps the option of bringing them back into the company,” Esken continued. However, she rejected federal aid for Volkswagen. “The federal budget does not have much scope for financing.”
Meanwhile, Left Party leader Janine Wissler brought up another idea in the “Rheinische Post”: “If VW really needs money so urgently, then the major shareholders like the Porsche-Piëch clan should pay back these 4.5 billion euros.”