The social season is starting at full speed. In late August, Volkswagen CEO Oliver Blume began a series of meetings with the group’s German employees. The goal is to prepare minds for the implementation of radical measures announced last July. On Tuesday, August 25, Mr. Blume outlined a still vague restructuring plan before more than 10,000 workers at the main Wolfsburg plant. According to him, Germany should bear half of the adjustments required to turn the group around. In early July, Volkswagen management mentioned 50,000 additional job cuts, on top of the 50,000 already announced and partially implemented over the past two years. With an operating margin of just 3.8%, the automaker does not earn enough to sustainably fund its future, the executive explained. Management estimates that costs in core and support functions are roughly 30% higher than those of comparable competitors.
As a Berlin correspondent for the French and Swiss press since the late 1990s, I cover a wide range of economic, political and social issues, with a particular focus on the German business and labour market. My areas of interest include co-determination, digitalisation, demographics and ESG/DEI policies.