Volkswagen boss Oliver Blume on Monday welcomed the social agreement providing for a reduction in production capacity and workforce equivalent to several factories at the crisis-hit car manufacturer. “The current solution, with the reduction of capacities on several sites, is equivalent to that of two to three large factories”says Oliver Blume in an interview published Monday by the Frankfurter Allgemeine Zeitung.
Volkswagen will cut more than 35,000 jobs in the country by 2030, or nearly 30% of its workforce, and reduce its production by 730,000 vehicles in several of the manufacturer's ten factories, without having to close sites or lay off workers, in the framework of a social agreement concluded with the IG Metall union. Volkswagen caused a shock in September by announcing that it wanted to restructure the VW brand without ruling out factory closures on vehicle and component production sites, a possibility categorically rejected by IG Metall.
Fall in sales
The Golf manufacturer is suffering from falling sales, the weakening of the automotive sector and growing competition from Chinese manufacturers, particularly in China, its main market. This agreement is “good news for Volkswagen”more “there is still a lot of work left, particularly in terms of costs”warns the manager, without being more precise. The leader sees Volkswagen committed to a long-term savings policy, while calling for political support.
Two months before the early legislative elections in Germany, with the economy expected to end the year in contraction, as in 2023, Oliver Blume believes that it is crucial to “create the right political conditions”. “Germany needs a revival – getting off the hard shoulder and back on the fast lane”he proclaims. For this it is important to “reduce costs, reduce bureaucratic obstacles, have affordable energy and security in subsidy commitments”.
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