Withdrawal of models, limitation of its car equipment and reduction of surplus productivity plans among others its management Volkswagen, for the company to become «the most attractive car industry in the world» until 2030. For the time being, however, no proposals were adopted to cut thousands of jobs and to shut down up to five factories within Germany.
According to Handelsblatt, the group's supervisory board decided tonight to proceed with the resolution programme prepared by CEO Oliver Blume, seeking to reduce operating costs and counter competition. In the near future, VW will reduce the range of models by up to 50%, while almost 75% will limit the supply of equipment for its vehicles. At the same time, the company will focus on reducing excess capacity to 9 million vehicles per year and optimising management structures, while seeking to align production, development and investment with its main car industry activity. In addition, the investment portfolio is to be examined strictly in terms of return on investments and its strategic importance.
The aim is to avoid the crisis or at least prevent the collapse of market share due to competition from China.
«We make the Volkswagen Group faster, more powerful and more competitive. Volkswagen should become the most attractive car industry in the world» By 2030, Mr. Blume said features.
Financial director Arno Adlic made it clear for his part that pressure for action has increased dramatically. The cost reduction programmes agreed so far are no longer sufficient in the light of tariffs, geopolitical risks and increasing competition, he explained and stressed that Volkswagen should now be able to «adjust radically» its business model.
According to Handelsblatt, the plan adopted tonight does not include final decisions on the possibility of closure of factories, additional job cuts or a fundamental restructuring of the group. Over the past few days information had been leaked on a recommendation from the administration to abolish up to 120,000 jobs and to close even five factories within Germany, with more likely those of VW in Emden, Hanover, Tsvikau and Osnabrook, as well as the Audi factory in Nekarsulm.
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