Volkswagen CEO Oliver Blume rejected factory closures as a cost-cutting measure, stating the company reduced costs at its German facilities by an average of 20% last year. Blume described the result as strong progress but emphasized further savings are still needed across the business. His comments follow reports of a broader restructuring proposal that could involve up to 100,000 job cuts and factory closures in Germany, which heightened tensions with labor representatives who control 10 of the 19 supervisory board seats. The works council said the premature disclosure of the proposals caused a major loss of trust in Blume. Management aims to reduce product complexity and focus on attractive market segments to improve efficiency without plant shutdowns.
Volkswagen AGCEO rejects factory closures, reducing restructuring risk and improving cost outlook.
Volkswagen AG VZO O.N.CEO rejects factory closures, reducing restructuring risk and improving cost outlook.