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.
infobud.ai is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand