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volkswagen ceo talks about declining sales and layoffs: the pie is getting smaller, and there are more guests at the table

2024-09-10

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according to fast technology on september 10, based on reports from multiple overseas media, volkswagen ceo oliver blume defended the company's large-scale layoffs plan on sunday local time.

blume said the current economic situation is "so severe" that it is impossible to simply repeat previous practices. "auto sales in europe are falling, new competitors from asia are actively entering the market,the cake is smaller, but there are more guests at the table。”

he also said the board was working on "further measures" to address the decline in car sales, but did not provide specific details. in the meantime, volkswagen remained "firmly committed" tostay in germany"we have employees whose grandfathers worked for volkswagen, and i want their grandchildren to work here, too."

background:

volkswagen is considering closing its german factories to deal with overcapacity and declining competitiveness, thereby further cutting costs. if finalized, it will mark the beginning of the volkswagen group'sfor the first time since its establishment 87 years agoclosure of german factory.

group cfo arno antlitz said at a staff meeting in wolfsburg on the 4th of this month: since the outbreak, car demand in europe has not recovered, and car deliveries in the entire european region have shrunk by about 2 million vehicles relative to the peak.

"volkswagen has lost sales of around 500,000 vehicles, equivalent to the production capacity of about two factories, so it needs to further reduce costs and increase productivity," it said.