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Volkswagen Faces Economic Challenges
2024-09-08 23:55:08
Automotive
Economy
Business

Volkswagen Faces Economic Challenges

Image courtesy of : AFP (MORITZ FRANKENBERG)

VW CEO Blume acknowledges a critical economic situation with declining sales and rising pressure from Asian competitors. The group contemplates shutting down production sites as current cost-cutting measures prove inadequate.

Talks of ending the employment guarantee are on the table, with Schäfer and Schmall exploring additional strategies. Lagging in profitability behind sister companies like Škoda, Seat, and Audi, VW seeks ways to navigate the crisis.

The industry experts and politicians emphasize the need for EU Commission assistance amidst the shrinking European automotive market and increased competition from Asia.

Related news on that topic:

VW CEO Blume Announces Further Austerity Measures

Volkswagen CEO Oliver Blume has warned against plant closures and layoffs due to the challenging economic situation. The company is facing declining sales, competition from Asia, unfavorable conditions in Germany, and problems with electromobility and the Chinese market. Chancellor Scholz is working closely with the company's works council and management to secure locations and jobs. However, SPD leader Esken has ruled out financial aid from the federal government to stabilize the VW Group. Blume defends the austerity measures, citing the difficult situation in the European automotive market and the declining competitiveness of German sites. There have been calls from the left-wing party for dividend repayments by major shareholders and criticism of VW's neglect of electromobility. Despite concerns, Blume reaffirms the company's commitment to the German location and long-term job security. The alarming situation at VW has been attributed to mismanagement by critics, with proposals for solutions such as state support, the transition to electric mobility, and reduced working hours. As the company contemplates plant closures, the pressure is on to find cost savings of 10 billion euros by 2026.

Volkswagen CEO defends job cuts citing economic pressures

Volkswagen CEO defends €4 billion in cuts to save jobs, citing economic pressures; worker reps warn of wider impact; Left Party demands dividend repayment; Chancellor Scholz aims to secure jobs; Federation slams 'unreliable infrastructure'; Volkswagen's share price has fallen, fewer cars sold in Europe; VW faces new competitors from Asia, first factory closures in nearly 90-year history. Worker representatives warn of the broader consequences of the €4 billion job cuts defended by Volkswagen's CEO, while the Left Party demands a dividend repayment. Chancellor Scholz aims to safeguard jobs amidst falling share prices and decreasing car sales in Europe. The Federation criticizes the 'unreliable infrastructure' as Volkswagen faces competition from Asia and prepares for its first factory closures in almost a century.

Read 23 more recent news on this topic

The press radar on this topic:

zeit
8. September 2024 um 01:51

Volkswagen: VW CEO Blume speaks of a "serious" economic situation

Economy
Finance
VW CEO Blume sees a serious situation at Volkswagen; declining sales, pressure from Asian competitors; the group is considering closing production sites; result programs and cost reductions are not enough; the group is considering terminating the employment guarantee; Schäfer and Schmall are working on further measures; VW is lagging far behind its group sisters like Škoda, Seat and Audi in terms of profitability.
NDR
8. September 2024 um 19:09

How can the Volkswagen Group get out of the crisis?

Economy
Technology
The announcement of the savings plans at Volkswagen has caused a lot of stir. Industry expert Ferdinand Dudenhöffer assesses the situation.
zeit
8. September 2024 um 17:54

Automotive Industry: Traffic Light Coalition Sees EU Commission Responsible for Volkswagen Crisis

Economy
Politics
Politicians from the traffic light coalition are calling for more help from the EU Commission for Volkswagen in light of the current problems. The President of the EU Commission should present an ambitious industrial strategy to strengthen European competitiveness.
DER SPIEGEL
8. September 2024 um 17:45

Volkswagen: SPD Wants to Support Crisis Companies with Electricity Price Brake - DER SPIEGEL

Politics
Economy
The SPD is calling for an electricity price brake for the industry in order to protect companies like VW and Thyssenkrupp from high energy costs. Hesse's Prime Minister Rhein also speaks out in favor of state aid for VW. VW CEO Blume describes the situation at VW as alarming and does not rule out plant closures and layoffs.
CW

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