Volkswagen’s plans could include the possibility of close two factories with the idea of cutting costs. A decision that has worried and infuriated hundreds of workers who have gathered in Wolfsburg on the sidelines of a meeting held at Volkswagen headquarters attended by several executives, including CEO Oliver Blume and CFO Arno Antlitz. And it was precisely this last one that raised a further alarm.
Volkswagen Alarm
According to him, Volkswagen he’s only one, maybe two years old available to get back on track as the group’s flagship brand. According to VW’s own CFO, the European car market has contracted since the start of the pandemic and it is unlikely that it will return to its heady pre-Covid levels any time soon: translated, we should see a significant drop in demand, especially for electric vehicles, which will mean that Volkswagen will sell about 500,000 fewer cars in a year.
We need to cut costs
Bottom line: The German giant will have a maximum of two years to cut production and reduce costs to stabilize the situation. This is also why Volkswagen is reportedly considering closing two factories: we know very little about this possible decision, although according to the latest rumors, one of these would be a car production site and the other a component plant. Rumors that, as mentioned, have angered several hundred workers, so much so that the IG Metall union he did not rule out a strike.
Two factories at risk
In this sense, CEO Oliver Blume appears to have stated that the loss of a few jobs today could prevent a ton more tomorrow. “The auto industry has changed enormously in the volume segment in a few years – Blume’s words reported by The Guardian – We will implement a series of appropriate measures to become more profitable. We are putting VW back where the brand belongs: this is the responsibility of all of us“.
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