Volkswagen earmarks €16 bln for job cuts, plant closures, source says
The plan would set aside up to €10 billion for severance and retirement schemes as Volkswagen cuts about 60,000 jobs worldwide.
- Volkswagen estimates the total cost of job cuts and potential plant closures at around €16 billion , a person familiar with the matter said on Thursday.
- Europe's largest carmaker has embarked on its biggest restructuring ever, citing an "existential battle" against competition from China, biting tariffs, and overcapacity.
- Volkswagen plans to set aside up to €10 billion by 2030 for the elimination of roughly 60,000 jobs, covering retirement schemes and severance packages.
- German magazine Der Spiegel reported that phasing out production at Emden, Zwickau, Neckarsulm, and Hanover would cost about €6 billion for possible plant closures.
- Alternatives are being explored for four German plants that will eventually run out of models during the next decade, while the company plans a reduction of around 50,000 more positions.
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61 Articles
According to insider figures, Volkswagen calculates 16 billion euros for job cuts and possible factory closures; Emden and Zwickau threaten the end from 2031, but nothing has yet been decided.
According to a report, Volkswagen expects costs of up to 16 billion euros for the dismantling of tens of thousands of jobs and possible plant closures in Germany. Up to ten billion euros would be due for the planned job reduction by 2030 alone, as reported by the news magazine "Der Spiegel".
VW's Massive Production Capacity and Workforce Overhaul Comes With a €16 Billion Price Tag
Volkswagen's latest restructuring program is turning out to be expensive before the company has even decided what happens to some of its German factories. According to Der Spiegel, the group estimates that job cuts and production capacity adjustments will cost in the ballpark of $16 billion, which means just under $18.6 billion at current exchange rates. Not surprising in the least, Volkswagen execs refused to comment on the alleged ... (continu…
The restructuring plan of the Volkswagen group? It has the objective of reducing the production capacity is no longer sustainable in the light of the lower current sales volumes and reducing operating costs. Row, of course. However, according to German weekly Der Spiegel, the company maneuver could cost the manufacturer up to 16 billion [...] The article Volkswagen, the restructuring can cost up to 16 billion euros comes from Il Fatto Quotidiano.
Europe's largest automaker is planning drastic cuts, which, according to a media report, are supposed to devour gigantic sums. Tens of thousands of jobs and several German plants are on the tip, while management hopes for a significantly higher return.
Volkswagen is preparing to spend €16 billion on large-scale cuts and possible plant closures <p>Volkswagen estimates a restructuring of €16 billion, including cutting up to 60,000 jobs. The company is also looking at the future Four factories in Germany.</p>
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