BERLIN (Reuters) – Volkswagen (ETR:)’s deliberate cost-cutting programme was unavoidable as a method to remedy “a few years of structural points” on the German carmaker, CEO Oliver Blume acknowledged in an interview printed on Sunday.
“The weak market demand in Europe and significantly lower earnings from China reveal a few years of structural points at VW,” Blume knowledgeable Sunday paper Bild am Sonntag.
The top of Volkswagen’s works council acknowledged last Monday that the carmaker plans to shut a minimal of three factories in Germany, lay off tens of 1000’s of staff and shrink its remaining crops in Europe’s largest financial system as a result of it plots a deeper-than-expected overhaul.
The carmaker has not confirmed these plans nevertheless on Wednesday it requested its employees to take a ten% pay decrease, arguing it was the one method that Europe’s largest carmaker would possibly save jobs and keep aggressive.
Blume acknowledged the worth of working in Germany was a major drag on Volkswagen’s competitiveness, telling Bild am Sonntag that “our costs in Germany should be massively diminished.”
There was no flexibility on the targets for cost-cutting, solely on how they’re to be achieved, he acknowledged.
The carmaker has put apart spherical 900 million euros ($975.06 million) in its annual report for executing the measures, in step with the paper.
($1 = 0.9230 euros)
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