Volkswagen’s CEO Oliver Blume has called for unity among employees ahead of upcoming factory meetings, urging them to support the company through tough times. Speaking to Bild am Sonntag, Blume emphasized the need for collective effort amid a global industry crisis. “The next weeks are crucial: everyone must pull together,” he stated. The automaker is implementing one of the most extensive transformation plans in its history, aiming to navigate shifting market conditions and intense competition. Blume described the situation as “more than critical,” highlighting the pressure from geopolitical tensions, trade barriers, regulatory changes, weak markets, and fierce rivalry. The company is preparing for a series of extraordinary factory meetings starting next week, during which management will address employee concerns. These gatherings follow a request from the workers' side for more transparency regarding cost-cutting measures. The meetings will take place in several locations including Hannover, Braunschweig, Salzgitter, Dresden, Chemnitz, and Kassel-Baunatal, with the first session in Wolfsburg on August 25th. The final meeting is scheduled for August 31st in Hannover. During these sessions, management will provide updates and respond directly to questions from staff. Blume has been clear that the coming years will determine the future of the company. He noted that the automotive industry is facing a major crisis, and Volkswagen is deeply affected. “Geopolitics, trade barriers, regulation, weak markets, and intense competition are all demanding action,” he explained. His appeal to the workforce focuses on maintaining competitiveness in Germany, emphasizing the importance of resilience and cooperation. This message comes after he announced earlier this year that work was underway on a new “Vision 2030” strategy, which includes significantly tightening cost controls. Since then, discussions have centered around potential plant closures and up to 50,000 additional job cuts. Blume has acknowledged that current savings, such as reduced production costs in German plants, are still insufficient. He described the company as “overdimensioned,” making it too slow and complex. To address this, he has pushed for further restructuring, stressing that the goal is to become more agile and efficient. The plan includes reducing the number of models by up to 50 percent and cutting available features by up to 75 percent. Industry representatives, however, have raised concerns over the proposed targets. Christiane Brenner, head of the IG Metall union and member of the Volkswagen supervisory board, criticized the ambitious goals as unrealistic. She referred to the target of achieving a nine percent operating margin as a “Wolkenkuckucksheim”, a fairy tale or impossible dream. Brenner questioned how Volkswagen could meet such high expectations under current geopolitical conditions, arguing that the proposed strategies would have serious consequences for model planning and plant operations. She stressed the need for greater clarity on which models would be affected and how the targets would be achieved. Brenner also pointed out that plant closures are not yet decided, though certain sites are considered vulnerable. She emphasized that the union does not support unilateral decisions on closures without prior consultation. Instead, she advocated for collaborative problem-solving involving partners, investors, and innovative industrial solutions. Blume, meanwhile, reiterated that while some plants face challenges, no definitive closure decisions have been made. He warned that plant shutdowns remain the last resort, and efforts should focus on creating new opportunities rather than immediate drastic actions. Blume has maintained that the figure of 50,000 threatened jobs is not a fixed number but rather an indicator of the scale of necessary adjustments. It reflects the comparison of costs against competitors and highlights the magnitude of required change. As the company moves forward, the upcoming factory meetings represent a key opportunity for dialogue and alignment between management and employees. With the stakes high and the path uncertain, both sides will need to find common ground to navigate the turbulent landscape ahead.
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