VW CEO tells employees cost-saving measures are necessary

Volkswagen CEO Oliver Blume has told employees that the automotive giant must implement cost-saving measures, emphasizing the need to reduce complexity, simplify structures, and cut expenses. The announcement came during a worker meeting at the company's headquarters in Wolfsburg.

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We need to reduce complexity, simplify our structures coherently, and reduce costs.

Blume stated that the entire automotive industry faces immense pressure from tariffs, new competitors, and geopolitical risks. He highlighted that Volkswagen's non-production-related costs are 30% higher than those of comparable companies. "From the current perspective, approximately half of the necessary adjustments correspond to Germany and the other half to international locations, in a total of about 170 companies," Blume explained, adding that without these changes, the company would face a permanent annual disadvantage of around 1.5 billion euros in Germany alone.

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Tariffs, new competitors, and geopolitical risks: the entire automotive industry is under enormous pressure.

However, the CEO's remarks were met with significant opposition. More than 10,000 employees protested the proposed savings plans, with some reportedly booing Blume. Works council chairwoman Daniela Cavallo criticized Blume's statements regarding potential job cuts, calling the figures theoretical and aimed at improving the company's stock image. "You cannot work with a CEO who does not tell his employees what they have to do!" Cavallo declared, criticizing the absence of a concrete plan. The state governor of Lower Saxony, Olaf Lies, also voiced criticism of Volkswagen's savings plans and factory closures.

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You cannot work with a CEO who does not tell his employees what they have to do!