At the ailing car manufacturer VW, everything seems to be even worse than initially assumed. Board member Oliver Blume has announced “further measures”. Because: Things cannot continue as they are now.
Following the Volkswagen Group’s announcement that it would tighten austerity measures again with job cuts and possible factory closures at its core VW brand, Group CEO Oliver Blume describes the poor economic situation at Volkswagen as alarming.
At the VW brand, the situation is “so serious that you cannot simply let everything continue as before,” Blume told Bild am Sonntag.
“In Europe, fewer vehicles are being bought. At the same time, new competitors from Asia are entering the market with force. The pie has become smaller and we have more guests at the table,” the CEO continues.
Austria hit by VW misery
The entire European automotive industry is in a very challenging situation that has never been seen before. “And the economic climate has become even more difficult, especially for the VW brand.” The problems in the German automotive industry are also affecting Austria, which has a large supplier industry that mainly supplies the major German car manufacturers.
Volkswagen has set up performance programs at all brands and companies, Blume said. At VW, however, the cost savings are currently not sufficient. “My colleagues, VW boss Thomas Schäfer and Thomas Schmall, are therefore working with their teams on further measures,” Blume added. He did not say what these might be.
Germany as a location is not wobbly
According to Blume, there will be no clarity: “We are strongly committed to Germany as a location, because Volkswagen has shaped entire generations. We have employees whose grandfathers worked at Volkswagen. I want her grandchildren to be able to work here too.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
