VW CEO Oliver Blume is actively seeking solutions to prevent the wave of factory closures threatening tens of thousands of jobs at the company. Appearing to the “Bild am Sonntag,” Blume stressed that there are “smarter solutions than closing factories.” The decisions concern sites in Zwickau, Emden, Hannover, and Neckarsulm.
Blume noted that the company’s internal savings program at its German production sites is already yielding results. He reported that factory costs in Germany improved by an average of 20 percent last year alone, calling this a “strong progress.”
Hope for the company’s future is also bolstered by its growing electric fleet. The new entry-level family, centered around the ID. Polo, has sold over 50,000 units in its first four weeks. Blume stated that VW is a clear market leader in Europe, both in combustion engine vehicles and full electric vehicles.
Despite these positive indicators, the VW chief remains concerned about the global environment. He described the current climate as “never before as challenging and risky.” This instability is driven by geopolitical tensions, trade barriers, regulatory changes, market disruptions, and fierce competition.
Globally, VW is facing the possibility of reducing up to 120,000 jobs, with 50,000 cuts already finalized. Blume is advocating for further reductions and a narrowing of the product range. While he acknowledges the popularity of the existing products, he argues that the profit margins are too low, necessitating continued cost reductions across all departments. He added that future strategy involves increasing sales per model, which requires consistently streamlining the product portfolio. Furthermore, Blume called for political support, emphasizing that the issue relates to Germany’s industrial standing. He asserted that transformation is a societal collective responsibility that requires everyone to contribute.
