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🇦🇹 Austria /Economy & Trade

Where Volkswagen stands before its final works meeting

From Die Presse · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Volkswagen is weighing deeper cost reductions as management seeks to improve competitiveness amid pressure from tariffs, new rivals and geopolitical risks.
  • The company’s existing plan to cut 50,000 jobs by 2030 may not satisfy Chief Executive Oliver Blume, while four German plants face uncertainty.
  • The supervisory board has not yet approved the broader plan, and further details could emerge at a meeting this week.

Volkswagen’s final scheduled works meeting before possible new decisions takes place in Hanover with tens of thousands of jobs and several factories hanging in the balance. The meeting brings management and employees together as the German automaker considers whether its cost-cutting drive must go further.

We must reduce complexity, consistently streamline our structures and cut costs.

— Oliver BlumeThe Volkswagen chief outlined the management’s case for further savings at a works meeting in Wolfsburg.

The company has already announced an ongoing reduction of 50,000 jobs by 2030. But Chief Executive Oliver Blume’s management believes that figure may not be enough and is working on a broader “Target Picture 2030.” That has raised fears about tens of thousands of additional positions and four sites: Emden, Zwickau, Audi’s plant in Neckarsulm, and Hanover, where commercial vehicles are built.

Volkswagen finance chief Arno Antlitz is due to face employees in Hanover and explain the need for additional savings. Blume has made the same case at other plants, saying the group must reduce complexity, streamline its structures and cut costs. He has pointed to tariffs, new competitors and geopolitical risks as pressures affecting the entire auto industry.

Tariffs, new competitors and geopolitical risks: The entire auto industry is under enormous pressure.

— Oliver BlumeBlume cited external pressures facing Volkswagen and the wider automotive sector.

Blume said the next phase would focus especially on costs outside direct vehicle production, including group positions, central functions, development and sales. Management will also face cuts. He said the company was examining those areas closely and planned to eliminate a quarter of management positions.

Our market shares are growing. But that is still not enough.

— Oliver BlumeThe chief executive said Volkswagen had begun redirecting the group and its brands, but needed further improvement.

The scale of the plan remains unsettled. The supervisory board reportedly rejected Blume’s proposal in July. Blume has also said that the 50,000 figure in the 2030 plan is not a fixed target, but a theoretical calculation derived from costs. He said labor costs at Volkswagen are more than twice those at comparable European sites, while factory costs are also higher at some locations. He estimates that Germany accounts for about half of the required adjustment. Whether any plants will close, and how many, remains unclear.

All areas must contribute their share; it is a major effort that can succeed only together.

— Oliver BlumeBlume described the scale of the cost-cutting program, including reductions in management.
About this summary

Originally published by Die Presse in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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