Volkswagen is desperately trying to keep up with buyers who are switching to electric vehicles. VW brand CEO Thomas Schafer warned: “We are no longer competitive” as he announced further job cuts.
Europe’s largest automaker is seeking to cut costs and improve profitability to keep pace with electric vehicle leaders such as Tesla. transmits Electrek. In 2022, then-VW CEO Herbert Diess “threatened” to overtake the American company in sales of electric vehicles by 2025.
With many of our existing structures, processes and high costs, we are no longer competitive as a Volkswagen brand.
Shafer explained at a meeting with employees on Monday.
According to a post on VW’s intranet, Schaefer warned that high costs and poor performance were making the cars uncompetitive.
To change this, in June the brand introduced a new cost-cutting program aimed at saving 10 billion euros by 2026. Volkswagen Group CEO Oliver Bloom aims to increase VW brand profitability to 6.5% over the next three years. Currently it is about 3.6%.
Gunnar Kilian, board member for human resources, said VW would take advantage of the “demographic curve” to cut staff, including by offering early or partial retirement.
We need to finally have the courage and honesty and throw overboard what is duplicated in the company or just ballast that is not needed to achieve good results.
2023-11-28 10:00:41
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