VW CEO Oliver Blume has threatened employees with cutting up to 50,000 jobs worldwide. Volkswagen’s overhead costs are 20 percent higher than comparable companies, Blume said in an internally published interview seen by Reuters on Monday. The costs would have to go down.
“Since half of the overhead costs result from personnel costs, a theoretical derivation without any change in labor costs would result in around 50,000 jobs worldwide,” he added. We are currently determining in all markets, societies and regions which adjustments are actually necessary and possible. “As soon as decisions are made, we provide transparent and comprehensive information.”
Plant closures in Germany are said to be on the table
So far, no details of the savings plan, which has been working on since January, have been given because there has not yet been approval from the responsible committees. The discussions about this in the Supervisory Board are progressing well, contrary to what media reports suggest. According to insiders, Blume’s restructuring plan was rejected last week by a majority of employee representatives and the state of Lower Saxony.
Plans to close four plants in Germany are also said to be on the table. Blume says that overcapacity of 500,000 units still needs to be reduced in Europe. “The truth is that we cannot yet confirm competitive occupancy for the Emden, Hanover, Zwickau and Neckarsulm plants in the 1930s.” But there are smarter solutions than closing a plant.
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