VW CEO Blume Warns of 'More Than Critical' Crisis, Flags Up to 50,000 Job Cuts
Volkswagen CEO Oliver Blume has told staff that the group's current situation is "more than critical." He is warning of the biggest upheaval in the company's history, and in Germany's auto industry as a whole.
Blume is visiting several Volkswagen plants to explain a new restructuring push and to win support for a cost-cutting plan. The company is looking at scenarios involving up to 50,000 additional job cuts worldwide. That number isn't a firm target, Blume stressed. It's meant to show the scale of cuts that may be needed to restore competitiveness.
Four Plants in Limbo
The future of four German factories remains uncertain: Emden, Hannover, Zwickau and Neckarsulm. Blume said there's no clear path right now for these sites to stay profitable into the 2030s. Plant closures would be a last resort, he added. Volkswagen is looking at alternative uses for some of these facilities instead.
Talks With Defence Firms
Volkswagen is in advanced talks with defence companies about industrial use of its Osnabruck plant. The company is fighting on several fronts at once: Chinese brands are gaining ground in Europe, profits are weaker in China, and US import tariffs are biting. Volkswagen also has roughly 500,000 units of excess annual production capacity in Europe.
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