According to automotive expert Stefan Bratzel, austerity measures are insufficient for Volkswagen to overcome its current crisis. Bratzel, who leads the Center of Automotive Management (CAM) in Bergisch Gladbach, told the “Neue Osnabrücker Zeitung” that “cutbacks alone will not save Volkswagen.”
While acknowledging that VW must drastically and quickly reduce its costs, he noted that the company faces growing pressure from excess capacity in its domestic plants. Beyond laying off employees, one way to lower high production costs could be increasing working hours without corresponding wage increases. However, Bratzel views the closure of four plants as excessive, arguing that “two locations should suffice.”
Furthermore, Bratzel urges the corporation to invest heavily in new growth areas, such as autonomous driving or robotics, where he believes the group has significant potential given its excellent technicians and engineers. To capitalize on this, the company needs to become bolder and take greater risks. “Not everything will work,” Bratzel cautioned, adding that without a “huge mindset change,” VW will struggle to regain competitiveness.
Consequently, the expert finds the corporate leadership to be caught in a difficult dilemma. “It is very challenging to deal with cost savings and plant closures in the morning and then address new growth areas in the afternoon.”
