2024-09-16 15:47:17
VW has imposed a tough austerity program. But the planned job cuts could also cost the company several billion.
According to analysts’ calculations, the tightened austerity measures could cost the car manufacturer Volkswagen several billion euros in the fourth quarter. On Monday, experts at the US investment bank Jefferies estimated the possible provisions at three to four billion euros. The reason for the now announced capacity reduction is not new, but management sees the issue as urgent and is determined to get the excess capacity under control, it said. Volkswagen declined to comment on the matter.
The Wolfsburg-based carmaker announced two weeks ago that it would significantly tighten its austerity measures and also threatened to close factories. Chief Financial Officer Arno Antlitz said that two million fewer vehicles would be sold annually on the European car market than before the pandemic – VW accounts for a quarter of this.
The Jefferies analysts wrote that the Volkswagen brand is considering closing two to three plants, with four or five locations in Germany being considered. The experts estimated the potential job cuts at more than 15,000.
VW has now terminated the collective bargaining agreements which, among other things, regulate the job security that has been in place for three decades. The first round of negotiations is scheduled for September 25. Works council chairwoman Daniela Cavallo has announced that she will fight against job cuts.