Car crisis
VW boss Blume on austerity measures: The goal is set, the path is flexible
It is clear that VW has to save a lot. Plant closures and layoffs are being discussed. According to CEO Blume, the path to the savings targets can be “flexibly designed”.
VW CEO Oliver Blume sees no alternative to tough austerity measures at Volkswagen. “The goal for cost and capacity adjustment is in place,” he told “Bild am Sonntag”. Only the path there can be “flexibly designed”. The costs in Germany have to come down massively,” said Blume. VW is too expensive at home. “Our labor costs here, for example, are often more than twice as high as the average at our European locations.”
According to the works council, at least three plants in Germany could be closed. VW has not yet provided any information about this. In the ongoing collective negotiations, the car manufacturer wants, among other things, to reduce collective wages by ten percent.
Blume emphasized that there is also a need for action when it comes to development and sales costs as well as other cost areas compared to the competition. VW is actually doing well. Group sales are currently slightly higher than the previous year, “our new products are well received.” However, the operating result is under enormous pressure after nine months and has fallen by more than 20 percent.
dpa
Source: Stern
