Volkswagen CEO sees 'more intelligent solutions' than factory closures

Volkswagen CEO Oliver Blume intends to steer clear of factory closures, stating that "more intelligent solutions" exist to address the future of tens of thousands of jobs. He made these remarks in an interview with "Bild am Sonntag."

The plants in Zwickau and Emden, the Audi plant in Neckarsulm, and the commercial vehicle plant in Hannover are reportedly facing potential risks. Blume highlighted the current global situation as particularly demanding and risky, citing geopolitical tensions, trade barriers, regulatory changes, market upheavals, and intense competition as significant challenges.

Blume has previously announced plans to reduce production capacity by one million vehicles to nine million per year by 2030. Additionally, the number of models is slated to be halved by 2035 to enable more cost-effective and efficient production. The company also aims to reduce overlap between its brands, as models from VW, Skoda, and Seat are currently competing with each other.

Approximately 40,000 people work at the affected plants in Zwickau, Emden, Neckarsulm, and Hannover. Previous reports indicated that Volkswagen is considering locating defense companies in these areas or producing its own models developed in China. Furthermore, the company plans to cut 5,000 of its 21,000 management positions worldwide by 2030. The board has not specified how many of the more than 650,000 global jobs might be eliminated.