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VW CEO Says Germany Bears About Half of Additional Job Cuts

Published: Updated: By 24TopNews Editorial Desk

Volkswagen Group CEO Oliver Blume said roughly half of the company's additional job cuts will need to take place in Germany, citing fixed costs that are 30% higher than competitors. Union leaders argue employees are being made to pay for years of strategic missteps in software, electric vehicles, and the Chinese market, and demand job security for all German plant workers.

Volkswagen Group Chief Executive Oliver Blume said that about half of the company's additional job cuts will need to be carried out in Germany. Blume attributed the measures to the carmaker's fixed costs being 30% higher than those of its competitors.

Union leaders said workers are being asked to bear the consequences of years of strategic failures in software, electric vehicles, and the Chinese market, and called on management to provide future employment prospects for staff at all German plants.

24TOPNEWS IMPACT INTELLIGENCE

Why this event matters

The event has a measured impact on 2 industrys. The strongest current signal is negative for Conventional Vehicles, with intensity 50/100 and 70% confidence over a short term horizon.

Automotive · 8.2

Conventional Vehicles

Direction
negative
Intensity
50
Confidence
70%
Horizon
Short term
Effective impact -24
Automotive · 8.3

New Energy Vehicles

Direction
negative
Intensity
30
Confidence
60%
Horizon
Short term
Effective impact -13

Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.