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" state ahead of meetings with staff to defend the company's savings plans. In an interview, Blume said the car manufacturer and Germany's automotive industry are facing the "biggest upheaval in their history" due to global headwinds and competition from China.

The company is considering significant job cuts, and Blume will meet with employees at Volkswagen's headquarters in Wolfsburg, as well as sites in Zwickau and Emden, to provide updates on the company's plans. However, no decision on plant closures has been made yet. Blume reiterated that closing plants in Emden, Hannover, Zwickau, and Neckarsulm currently do not seem profitable in the 2030s, emphasizing that factory closures are the "last and most expensive solution."

The company is also exploring other industrial solutions, including talks with defense industry companies about using its factory in Osnabrück. Blume's comments come after Volkswagen announced plans to cut 50,000 jobs, with agreements already reached with 37,000 employees. The IG Metall union, representing the company's workers, has criticized management and vowed to resist factory closures.