In an internal memo, Volkswagen's CEO Oliver Blume confirmed the potential for up to 100,000 job cuts as the automaker seeks to address a 20% cost disadvantage compared to its competitors. This announcement comes as Volkswagen grapples with declining profits due to high tariff costs and the need for greater efficiency in its German manufacturing operations.
Blume noted that the company is evaluating necessary adjustments across all brands and regions, following earlier job cut agreements that included its Porsche and Audi subsidiaries. The memo also highlighted ongoing tensions with labor representatives, who have resisted proposals that could lead to factory closures, specifically mentioning the plants in Emden, Hanover, Zwickau, and Neckarsulm.
Blume expressed a preference for finding alternative solutions rather than closing facilities, suggesting potential new uses for underutilized factories, such as in the defense sector or for producing Volkswagen models intended for the Chinese market