Dramatic tightening of austerity measures, with closure of production lines and possible staff reduction by Volkswagen.
Dramatic tightening of austerity measures, with the closing of production lines, removal of the employment guarantee and possible reduction of staff, announced the board of directors of Volkswagen.
In the context of the Group’s restructuring program with a horizon of 2026, the board of directors found that the deficit of 5 billion euros cannot be covered by soft measures. As CEO Oliver Blume explained, “the economic environment has worsened again and new providers are putting pressure on Europe”whereas “Germany lags significantly behind in competitiveness.” As a company, we must act consistently in this environment, as the company risks missing the savings targets it had set.”Mr. Blume pointed out.
Among the measures to be implemented is the suspension of the “job guarantee” for 110,000 workers, which has been renewed continuously since 1994. VW management now plans to end it by 2029, without ruling out layoffs. “In the current situation, factory closures cannot be ruled out if there are no quick countermeasures”VW’s board of directors said.
Management is expected to brief workers on its plans on Wednesday, but, according to Handelsblattit will be the biggest package of measures Volkswagen has seen in decades.
Source: Skai
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