Volkswagen chief warns company’s situation ‘more than critical’
Germany’s car industry facing major upheaval from global headwinds, Chinese competition, he says.
On August 23, Volkswagen’s chief executive, Oliver Blume, warned that the company was in a "more than critical" state ahead of staff meetings to defend its cost-cutting plans. In an interview with the company's intranet, Blume stated that Volkswagen and Germany's automotive industry are facing "the biggest upheaval in their history" due to global challenges and competition from China.
The company is considering significant job cuts and has initiated a review of plant profitability in Emden, Hannover, Zwickau, and Neckarsulm, deeming them unprofitable in the 2030s. Blume emphasized that factory closures are always the "last and most expensive solution," and instead, the company is exploring industrial partnerships, including talks with defense sector firms to repurpose their plants.
Earlier in the year, Blume had presented a set of cost-saving measures to the supervisory board, but no decision had been made. In July, he had said that Lower Saxony state, a major shareholder in Volkswagen, had refused to approve the plans. The automaker had already cut 50,000 jobs, with agreements reached with 37,000 employees.
Blume appealed for unity, urging employees to back the company's plans for survival. The head of the IG Metall union expressed strong opposition to factory closures, criticizing management for imposing further hardships on workers who had already endured substantial reductions in pay and benefits.
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- Volkswagen chief warns company’s situation ‘more than critical’ freemalaysiatoday.com
