Frankfurt (Germany), 21 Aug. (LaPresse) – “The situation is more than critical.” This was stated by Volkswagen’s chief executive, Oliver Blume, as he described the group’s situation ahead of a series of staff meetings scheduled for the coming days. The group, Blume added, is “in a position to act”, but must take urgent action. “An operating profit margin of 3.8 per cent, in this difficult situation, is solid,” the CEO explained in an interview published on the group’s internal network and viewed by DPA. “But it is far from sufficient to generate adequate resources on a sustainable basis for new technologies, new products and our plants.” Blume emphasised that even the savings already achieved are still not enough. These include an average 20 per cent reduction in costs at German plants over the past year. The CEO had announced in the spring that a new ‘2030 target’ was being drawn up for the group, accompanied by a further tightening of the cost-cutting plan. Before the summer break, he had also made it clear that he intended to approve the package of measures by the end of the year. Meanwhile, four plants and up to 50,000 further jobs remain in the balance within the group. Between 25 and 31 August, nine staff meetings are scheduled at various German sites, including Wolfsburg, Emden, Zwickau, Hanover, Braunschweig, Salzgitter, Dresden, Chemnitz and Kassel-Baunatal.
Cars: Volkswagen CEO Blume: ‘The situation is more than critical’
Frankfurt (Germany), 21 Aug. (LaPresse) – “The situation is more than critical.” This was stated by Volkswagen’s chief executive, Oliver Blume, as he described the group’s situation ahead of a series of staff meetings scheduled for the coming days. The group, Blume added, is “in a position to act”, but must take urgent action. “An operating profit margin of 3.8 per cent, in this difficult situation, is solid,” the CEO explained in an interview published on the group’s internal network and viewed by DPA. “But it is far from sufficient to generate adequate resources on a sustainable basis for new technologies, new products and our plants.” Blume emphasised that even the savings already achieved are still not enough. These include an average 20 per cent reduction in costs at German plants over the past year. The CEO had announced in the spring that a new ‘2030 target’ was being drawn up for the group, accompanied by a further tightening of the cost-cutting plan. Before the summer break, he had also made it clear that he intended to approve the package of measures by the end of the year. Meanwhile, four plants and up to 50,000 further jobs remain in the balance within the group. Between 25 and 31 August, nine staff meetings are scheduled at various German sites, including Wolfsburg, Emden, Zwickau, Hanover, Braunschweig, Salzgitter, Dresden, Chemnitz and Kassel-Baunatal.