“One thing is clear: Volkswagen must reduce its costs at its German sites,” a company spokeswoman said. That’s the only way the brand can earn enough money for future investments. “How this goal will be achieved with employee representatives is part of the upcoming discussions,” she said. VW could not confirm the figure.
Volkswagen is struggling with rising costs at its core VW Passenger Cars brand. The automaker has ended a decades-old labor guarantee agreement with unions in Germany, and plant closures and layoffs are on the table. Brand boss Thomas Schäfer wants to raise operating return on investment to the target level of 6.5 percent in the coming years. Negotiations with the IG Metall union begin on September 25.
The pressure seems to be so great that far-reaching staff cuts are on the table. According to MM, the number of employees in Germany is expected to fall by 30,000 in the medium term from 130,000, according to the hardliners. CEO Oliver Blume also considered this realistic in the long term in a small circle. His predecessor Herbert Diess had already encountered enormous resistance to ideas about job cuts of this magnitude and had to quickly cancel corresponding plans.
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