VW CEO says Germany to bear half of additional job cuts

Management
โดย Just Auto·DE·Read original
Summary · why it matters

Volkswagen CEO Oliver Blume has told employees that roughly half of any further job reductions will need to fall on Germany, as the carmaker faces fixed costs 30% above rivals. Speaking at the Wolfsburg site, Blume said the frequently cited figure of 50,000 additional global job losses is a theoretical estimate, not an agreed target. The company is developing measures to cut annual European production capacity by 500,000 vehicles, streamline management, and trim its model range. Employee representatives warn that up to 140,000 roles could ultimately be affected, including about 50,000 cuts already agreed in Germany, another 50,000 suggested globally, and roughly 40,000 jobs at four German factories whose long-term status is unresolved. Blume said factory closures are the costliest option, and sites have up to a year to propose alternatives, with a settlement involving voluntary departures and reduced output possible. Works council leader Daniela Cavallo said confidence in leadership has been "damaged," while Porsche SE has pressed for faster action. VW needs at least €10bn in overhead reductions amid weaker Chinese sales and high German costs, with first-half operating profit down 11.6% to €5.93bn.

Impact on stocks 3

Consumer Discretionary▼ · 2 stocks
Volkswagen AG
VOW
▼ NegativeCapitalrelevance

VW faces high fixed costs, weaker Chinese sales, and profit decline, leading to job cuts and potential factory closures.

Electrification & Mobility▼ · 1 stocks
Volkswagen AG VZO O.N.
VOW3
▼ NegativeCapitalrelevance

VW faces high fixed costs, weaker Chinese sales, and profit decline, leading to job cuts and potential factory closures.

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