Volkswagen's opens new tab planned cost-cutting programme was unavoidable in order to remedy "decades of structural problems" at the German carmaker, CEO told
Volkswagen's opens new tab planned cost-cutting programme was unavoidable in order to remedy "decades of structural problems" at the German carmaker, CEO Oliver Blume said in an interview published on Sunday.
"The weak market demand in Europe and significantly lower earnings from China reveal decades of structural problems at VW," Blume told Sunday paper Bild am Sonntag.
The head of Volkswagen's works council said last Monday that the carmaker plans to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul.
The carmaker has not confirmed those plans but on Wednesday it asked its workers to take a 10% pay cut, arguing it was the only way that Europe's biggest carmaker could save jobs and remain competitive.
Blume said the cost of operating in Germany was a major drag on Volkswagen's competitiveness, telling Bild am Sonntag that "our costs in Germany must be massively reduced."
There was no flexibility on the goals for cost-cutting, only on how they are to be achieved, he said.
RBI cuts repo rate to 6.25% for the first time in nearly five years to support growth amid cooling inflation. Markets react mildly as economists foresee further easing ahead.
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Global markets plunged on Monday as Trump’s tariffs on Canada, Mexico, and China rattled investors, fueling fears of a trade war. A last-minute pause on Mexico’s tariffs helped limit losses, while gold hit a record high and U.S. factory activity returned to growth.
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Volkswagen, a key player in the global automotive industry, has finalized the sale of its manufacturing plant and testing facilities in Xinjiang, China, marking a significant shift in its operational strategy.
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Hamas has begun releasing six more hostages from Gaza on Saturday in exchange for hundreds of Palestinian prisoners, as Israel confirmed that a body handed over earlier was that of hostage Shiri Bibas.
Kyrgyzstan and Tajikistan have reached a historic border agreement, potentially ending a century-long dispute. The deal, hailed as a breakthrough, covers delimitation, water, and infrastructure issues. If finalized, it could ease tensions and support political, economic, and social cooperation.
The U.S. and Ukraine are close to finalizing a deal granting the U.S. mineral rights in exchange for military aid, according to Wall Street Journal.
As US-Russia peace talks advance, Ukrainian President Volodymyr Zelenskyy intensifies diplomatic efforts, holding discussions with multiple world leaders to rally support for Ukraine’s sovereignty and regional security.
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