Volkswagen chief warns company’s situation ‘more than critical’

Volkswagen's CEO, Oliver Blume, has warned that the company is in a "more than critical" situation ahead of meetings with staff. In an interview, Blume stated that the car giant and Germany's automotive industry are facing the biggest upheaval in their history due to global headwinds and Chinese competition. The company is considering significant job cuts, and Blume will meet with employees at Volkswagen's headquarters in Wolfsburg and sites in Zwickau and Emden to provide updates on the company's plans.

Blume emphasized that no decision has been made yet on plant closures, but he reiterated the company's stance that some factories in Emden, Hannover, Zwickau, and Neckarsulm are unprofitable in the 2030s. The company is also grappling with overproduction of 500,000 vehicles annually in Europe. Blume clarified that closing factories would always be the last and most expensive solution.

He added that Volkswagen is exploring industrial solutions, including talks with defense industry companies for using its factory in Osnabrück.

In July, Blume presented saving plans to Volkswagen's supervisory board, but no decision was taken. German media reported that the Lower Saxony state government, a major shareholder in the Volkswagen Group with a 20% voting stake, refused to sign off on the plans. The company has already ordered 50,000 job cuts, and Blume said agreements have been reached with 37,000 employees. He urged employees to unite for the sake of the auto giant, stating, "We will only be successful if everyone in the company supports this plan."

The head of the IG Metall union criticized management on Friday and promised to resist factory closures. Workers at Volkswagen have already faced significant cuts and now face another challenge.