Volkswagen CEO Thomas Schaeffer attributed the need for a cost-saving program, including staff reductions, to the brand’s loss of competitiveness. In this respect reports Reuters.
According to the agency, Schaeffer said at a meeting attended by Volkswagen employees at the company’s headquarters in Wolfsburg: “We are no longer competitive as a Volkswagen brand due to many pre-existing structures, processes and high costs.”
The automaker is currently in discussions with the works council regarding a cost-cutting plan. Volkswagen plans to achieve a 6.5% return on sales by reducing costs by €10 billion (₽971 billion) by 2026.
Volkswagen executives told workers that the 10 billion euro savings program would also include staff cuts. In particular, employees will be offered to make an agreement on early retirement.
It was previously known that for the first time a Chinese car had a chance to obtain It received the title of “Car of the Year” in Europe.