VW CEO praises Zwickau workers but warns of ongoing cost challenges

Volkswagen CEO Oliver Blume acknowledged the efforts of workers at the Zwickau plant, commending their success in reducing costs, improving processes, and advancing personnel restructuring as planned. "You have shown that change is possible," Blume stated at a works meeting, urging others in the group to "look to Saxony to see how well it went there."

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You have shown that change is possible.

Despite these achievements, Blume emphasized that the company has not yet reached its goals. He highlighted the need to secure the group's long-term competitiveness, pointing out that labor costs at Zwickau are more than double those of comparable European locations, and factory costs are also higher than at other plants. "This is not an accusation, it is the reality by which we must measure ourselves," he said.

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The labor costs are today more than double those of comparable European locations. And also in terms of factory costs, other plants are still significantly cheaper.

Blume confirmed that no decisions have been made regarding potential plant closures for the Emden, Hannover, Zwickau, and Neckarsulm sites, as there is currently no "competitively viable utilization for the 2030s." He assured that Volkswagen would remain responsible even if these plants lack future assignments. "We are fighting for industrial perspectives and for employment for our locations. With partners. With investors. With new industrial solutions," Blume stated.

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This is not an accusation, it is the reality by which we must measure ourselves.