Volkswagen Announces Radical Savings

The Works Council of Volkswagen criticized the management of the company today due to, as stated, “disastrous communication” regarding the situation in the company.

Employees and their families are “disturbed and scared” because of the uncertainty, according to a message from the works council reported by Reuters.

The Workers’ Council demands clearer information about the future of individual factories, as well as about possible reductions in the number of employees, since they claim that they only get the most important information from the media.

On Tuesday, Volkswagen CEO Oliver Blume will answer employees’ questions at an extraordinary meeting in Wolfsburg, while meetings are also planned for the week at factories in the cities of Emden and Zwickau. Last week, Blume assessed that the situation in the company is “more than critical”, according to “Spiegel”.

Volkswagen plans to reduce the production capacity of its European factories by around 500,000 vehicles per year.

At the same time, the company is planning a significant cost reduction. According to Blume, Volkswagen’s overhead costs are about 30 percent higher than those of its competitors, necessitating a major transformation program.

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