Volkswagen labour chief says confidence in CEO damaged but can be repaired
Employees say Volkswagen’s communication on restructuring has been disastrous as management weighs up to 50,000 more job cuts, workers representatives said.
- On Tuesday, Daniela Cavallo, chair of Volkswagen's Works Council, told CEO Oliver Blume at a Wolfsburg meeting that employee trust in the board "has been damaged," but remains "not yet beyond repair."
- Facing "the biggest upheaval in their history," Volkswagen management cites intense pressure from Chinese rivals and tariffs, warning of a permanent 1.5 billion euros annual cost disadvantage compared to global competitors.
- After already agreeing to 50,000 job cuts, Volkswagen management now warns that 50,000 additional positions may be required, fueling worker anger over what Unions described as "disastrous" communication regarding potential factory closures.
- Restructuring plans face significant political hurdles as Lower Saxony, which holds 20% of voting rights, has refused to sign off, with state Premier Olaf Lies stating the region must remain "automotive country."
- While Blume warned the next few years are "decisive" in determining company viability, IG Metall chief Christiane Benner urged joint solutions rather than relying solely on job cuts to restore competitiveness.
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Oliver Blume, the Chairman of the Executive Board of the German automaker, began on Tuesday 25 August a tour of the group's factories to convince employees of the need to remove 50,000 additional posts.
Volkswagen workers boo boss during speech on job cuts
VW, long a titan of German industry, has struggled with Chinese competition, US tariffs and patchy demand in Europe, including for its electric vehicles. About 50,000 job cuts have already been agreed across the 10-brand Volkswagen Group -- mostly at VW, Audi and Porsche -- but the firm has said another 50,000 could be required worldwide to slash costs. Speaking in front of about 10,000 workers at VW's Wolfsburg factory, CEO Oliver Blume said fo…
In Germany, four out of five of the group's factories are at risk. Workers are losing confidence in management's plans and are announcing that they will find a way out of the crisis themselves.
The CEO of the German giant Blume started the tour of the plants from Wolfsburg to illustrate his plan. It lasts the reaction of the workers' representatives: "Insufficient information" about the fate of four factories in Germany
"We need to reduce complexity, simplify our structures in a coherent way and reduce costs," said Oliver Blume during a meeting with the workers at the group's headquarters in Wolfsburg
With its conversion plan for Europe's largest car manufacturers, VW CEO Oliver Blume encounters massive protest from the employees. The overall works council considers the trust in the Volkswagen boss to be damaged.
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