Volkswagen Admits It Is No Longer Competitive

There was a remarkable development regarding the German automotive giant Volkswagen. Reuters, Volkswagen will shrink He claimed. Moreover, the news source stated that he received this information personally from Volkswagen CEO Thomas Schafer. If the allegations are true, the automotive industry the balances are starting to change We can say.

According to Reuters news Thomas Schaferpublished an article that can only be seen on Volkswagen’s own server system. CEO of Volkswagen in this article It is not as profitable a company as it used to be. he was saying. Reminding that a savings program worth 10 billion euros has been created for this purpose, Schafer stated that this program will lead to austerity policy in many areas, including personnel reduction.

While Volkswagen’s costs increase, its profitability decreases

COVID-19 and the war that broke out between Russia and Ukraine increased the costs of all brands in the automotive industry. Volkswagen was also affected by this. However, the electric car transformation combined with this, especially chinese They caused chaos because they dominated the market. The fact that consumers can buy electric cars at a much cheaper price instead of models such as Polo or T-ROC has made Volkswagen popular in many countries. to the campaign pushed. All of these led to a decrease in the company’s profitability.

Thomas Schafer spoke on the subject as follows:

We are no longer competitive as a Volkswagen brand due to many of our pre-existing structures, processes and high costs.

Volkswagen wasn’t considering mass layoffs until 2029

When Volkswagen announced its 10 billion-euro savings program, there were no plans for mass layoffs. you didn’t plan he said. This decision would be valid until 2029. However, the latest point reveals that Volkswagen’s decision has changed. However, Volkswagen has no idea how to downsize without upsetting its employees. has produced a solution.

According to information obtained, Volkswagen management held a meeting after the article shared by Thomas Schafer. Gunnar Kilian, who is responsible for the human resources unit, explained how Volkswagen will shrink in this meeting. According to Kilian’s statement, Volkswagen, partial or early retirement will make agreements and lay off personnel.