Autobauer: Volkswagen zwischen Spardruck und Zukunftsangst

German automakers Volkswagen find themselves between the necessity of fiscal austerity and anxiety over thousands of jobs and entire factories, according to automotive expert Helena Beron Wisbert. "The cost-cutting programs we're seeing across all the automakers are inevitable," she told Deutsche Presse-Agentur. For the professor from Ostfalia Hochschule Wolfsburg, it's especially important to swiftly implement the cost-saving measures to refocus on developing new models and technologies.

After all has been done to restore competitiveness in the Chinese market, the European automotive market should not be forgotten. German automakers still dominate in Europe, but market shares are dwindling in the era of electric vehicles. While the trade union and political criticism may be understandable, Beron Wisbert says that securing further cost cuts within the next few months is now crucial.

Unusual plant meetings have taken place at many VW locations in recent days, with workers demanding more job security and the closure of four manufacturing sites: Emden, Zwickau, the Audi plant in Neckarsulm, and Hannover for commercial vehicles. Volkswagen CEO Blume emphasized the situation as "more than critical." The management aims to present a new "2030 vision" during the plant meetings, stressing that while the company is profitable, it earns too little to finance its future.

Professor Beron Wisbert believes it's important that the management personally visited the factories, as information had only been shared through third parties until then. However, the workers must understand that the 20% cost cuts achieved so far are not enough. There will be another uncertain period of six to twelve months, during which solutions must be sought.

Beron Wisbert appreciates the personal appearances by the management but finds it difficult to tell the workforce, concerned about job security, that everyone must pitch in and it's a collective effort. This is more likely to be words to persuade management to accept bonus cuts, according to the professor. At the upcoming supervisory board meeting, scheduled for Friday, September 4th, the management is expected to present an updated cost-cutting plan, with individual measures potentially approved by the oversight body.

Prof. Beron Wisbert does not believe there will be concrete solutions for individual plants due to the six to twelve-month timeframe.