Oliver Blume, the Chairman of the Board of Volkswagen AG, has directed the workforce to accept profound cuts while simultaneously demanding absolute unity in the face of a global industry crisis. Speaking to “Bild am Sonntag”, Blume stated, “The coming weeks will be decisive: Everyone must participate. We have developed the largest transformation plan in the history of the Volkswagen Group.”
In the coming week, a series of extraordinary works council assemblies is scheduled to take place. Prior to the factory holidays, the employee representatives had demanded details regarding the required layoff plans and austerity measures. The VW chief added, “The next few years are crucial for determining who remains in the race and who takes the lead.”
The Group CEO attributes the intense pressure for cost-saving measures to a fundamental shift in the market and global disruptions. Blume explained that “the worldwide automotive industry is in a mega crisis, and the Volkswagen Group is right in the middle of it. Geopolitics, trade barriers, regulations, weak markets, and massive competition are all challenging us.”
Despite the hardening stance within the company, Blume appealed to the workforce’s fighting spirit, stressing the importance of maintaining the company’s competitiveness and supporting the employees and the local operations in Germany.
