Volkswagen CEO Warns of Further Cost Cuts Amid Restructuring
Volkswagen CEO Oliver Blume has called for deeper cost reductions as the company prepares to finalize its restructuring plan. In an internal memo, he highlighted deteriorating industry conditions and stressed that Volkswagen's current margins are insufficient to fund long-term investments in new technologies and facilities. The automaker is considering up to 50,000 additional job cuts globally and may separate certain business units, though no formal targets have been set. Blume cited higher overhead costs compared to competitors as a key issue, with the supervisory board scheduled to meet on September 4 for further discussions. The company also plans to reduce its model lineup and lower production capacity at several plants in Germany during the 2030s, though no closures have been confirmed yet. Volkswagen's majority shareholder Porsche SE has urged swift action after significant impairments linked to their investment.
Topics: automotive cost-cutting job reductions Volkswagen CEO statement