BERLIN, Aug 21 (Reuters) – Volkswagen CEO Oliver Blume said the German carmaker’s overhead costs remain over 30% higher than those of comparable firms and that it must reduce that disadvantage to stay competitive, according to an internal company interview.
“The frequently cited figure of around 50,000 jobs worldwide is not a fixed target; rather, it is derived from our cost objective relative to the competition and serves as an indicator of the scale of action required,” he said in the interview seen by Reuters on Friday.
In the face of rising costs and intensifying competition from China, Blume has pledged to overhaul the group, positioning hard decisions about job cuts as necessary for the company’s survival.
The controlling families behind VW earlier this month dialled up the pressure on all stakeholders and demanded dramatic restructuring efforts.
“We want to be a Volkswagen Group that is successful worldwide, sets technological standards and at the same time remains firmly rooted in Germany,” he said.
Four Volkswagen plants in Germany — Emden, Hannover, Zwickau and Neckarsulm — are not expected to reach competitive capacity utilisation in the 2030s, he said, but stressed that there is no decision yet on specific plant closures.
Sites have made progress in some areas, he said, but it is not yet enough, even without considering the pressure from new competitors from China and their plants in Europe.
(Reporting by Christina Amann, Writing by Miranda MurrayEditing by Ludwig Burger)
Comments