VW cancels salary increase for managers

There will be no planned inflation bonus of 1,000 euros for Volkswagen AG managers or a pay increase of 3.3 percent on May 1, as a company spokeswoman confirmed on Sunday. This should help increase the operating profit margin to 6.5 percent in 2026. The “Handelsblatt” had previously reported on it.

Accordingly, the money should not be paid out because of the poor market environment. Oliver Blume’s board of directors also wants to forego money out of solidarity. The company spokeswoman said: “Members of management have a special responsibility for the company and act as an important role model, which is particularly important in the current situation.”

At the end of December, after months of struggle with the works council, Volkswagen agreed on the key points of a billion-dollar savings program. The personnel costs of the Volkswagen core brand are to be reduced by 20 percent in the administrative area, but there will be no redundancies for operational reasons. There should be greater savings in material and fixed costs.