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Volkswagen CEO defends job cuts citing economic pressures
2024-09-08 17:55:08
Business
Economy

Volkswagen CEO defends job cuts citing economic pressures

Image courtesy of : AFP (MORITZ FRANKENBERG)

Volkswagen CEO defends €4 billion in cuts to save jobs, citing economic pressures; worker reps warn of wider impact; Left Party demands dividend repayment; Chancellor Scholz aims to secure jobs; Federation slams 'unreliable infrastructure'; Volkswagen's share price has fallen, fewer cars sold in Europe; VW faces new competitors from Asia, first factory closures in nearly 90-year history.

Worker representatives warn of the broader consequences of the €4 billion job cuts defended by Volkswagen's CEO, while the Left Party demands a dividend repayment. Chancellor Scholz aims to safeguard jobs amidst falling share prices and decreasing car sales in Europe.

The Federation criticizes the 'unreliable infrastructure' as Volkswagen faces competition from Asia and prepares for its first factory closures in almost a century.

Related news on that topic:

VW CEO Blume Announces Further Austerity Measures

Volkswagen CEO Oliver Blume has warned against plant closures and layoffs due to the challenging economic situation. The company is facing declining sales, competition from Asia, unfavorable conditions in Germany, and problems with electromobility and the Chinese market. Chancellor Scholz is working closely with the company's works council and management to secure locations and jobs. However, SPD leader Esken has ruled out financial aid from the federal government to stabilize the VW Group. Blume defends the austerity measures, citing the difficult situation in the European automotive market and the declining competitiveness of German sites. There have been calls from the left-wing party for dividend repayments by major shareholders and criticism of VW's neglect of electromobility. Despite concerns, Blume reaffirms the company's commitment to the German location and long-term job security. The alarming situation at VW has been attributed to mismanagement by critics, with proposals for solutions such as state support, the transition to electric mobility, and reduced working hours. As the company contemplates plant closures, the pressure is on to find cost savings of 10 billion euros by 2026.

VW Major Shareholders Called to Repay Dividends Amid Crisis

Volkswagen's major shareholders, including the Porsche-Piëch clan, are being urged to repay 4.5 billion euros in dividends to prevent plant closures and layoffs. The Left party leader criticizes the situation, arguing that employees and taxpayers should not bear the brunt of mismanagement. Volkswagen CEO, Oliver Blume, announced a cost-cutting program due to the difficult European car market and declining competitiveness. The crisis at Volkswagen, a vital company for Germany's economy, could have broader implications. Factory closures and job cuts are being considered to save 10 billion euros, with workers protesting against the plans. The company's failure to adapt to electric vehicles and the economic downturn in the car market contribute to the crisis. The government's green agenda has also impacted domestic car sales. Concerns over the lack of future security for new recruits and a sense of doom and uncertainty among workers have been reported. The company's reputation suffered from the 'dieselgate' scandal and the loss of local business taxes. Volkswagen's inability to produce an affordable entry-level electric car in Germany further adds to the challenges it faces.

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