VW's Blume Says Overhead Costs 30% Above Rivals, 50,000 Jobs Figure a Guide
Blume said overhead costs are more than 30% higher than rivals as Volkswagen weighs up to 50,000 more job cuts and plant changes.
- On Friday, Volkswagen CEO Oliver Blume warned that deep cost cuts are required to keep the automaker afloat as it prepares for weeks of crunch talks over a planned revamp.
- Declining profits and overcapacity in Europe plague the automaker, which is squeezed by aggressive Chinese competition, falling profits in China, and import tariffs in the United States.
- Overhead costs remain more than 30% higher than comparable firms, while current margins of less than 4% are insufficient to generate funds for new technologies and products, Blume said.
- Potential restructuring may include up to 50,000 job cuts, affecting German sites including Emden, Hannover, Zwickau, and Neckarsulm, though Blume stressed no decisions on plant closures exist.
- The Volkswagen supervisory board meets September 4 to discuss turnaround plans, while Blume will tour at-risk plants next week amid controlling families' demands for dramatic restructuring.
13 Articles
13 Articles
Oliver Blume wrote in an internal memo that the problems of the automotive industry will worsen in the coming years. The group does not rule out the possibility of 50,000 layoffs.
Right after the summer break, Volkswagen is facing restless days. Tens of thousands of places are said to be threatened, even locations may be in danger. How does VW CEO Blume see the situation?
Right after the summer break, Volkswagen is facing restless days. Tens of thousands of jobs are to be threatened, even locations may be at risk. How does VW CEO Blume see the situation?The factory holidays are almost over, and Volkswagen is over: Corporate CEO Oliver Blume described a tense situation for the largest car manufacturer in Europe just before a series of company meetings. "The situation is more than critical", said the Group CEO in a…
According to Oliver Blume, the savings made at VW so far are not sufficient. In an internal interview, he calls the company "oversized".
Shortly before a series of company meetings, Volkswagen CEO Oliver Blume paints a gloomy picture for the car company. Tens of thousands of jobs and several locations are at stake as part of an intensified austerity policy.
Coverage Details
Bias Distribution
- 57% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
