Volkswagen CEO booed by workers over mass layoffs, factory closures
What's the story
Volkswagen's CEO Oliver Blume was met with boos and whistles at the company's headquarters. This was after he spoke for the first time since details about plans for mass job losses and possible factory closures were made public. Addressing over 10,000 workers in Wolfsburg, Germany on Tuesday, Blume stressed that drastic restructuring measures were vital for Volkswagen's future.
Worker response
Workers protest against the announcement
The announcement was met with protests from the workers who held up banners and shouted slogans such as "our jobs are not your balance sheet adjustments."
Blume said, "Our plan for the future is the largest transformation program in our company's history. To make this happen, everyone needs to pull together now."
Future prospects
Restructuring plan aims to secure a future for all plants
The restructuring plan aims to secure a future for all plants at Europe's largest carmaker.
Blume said, "Our aim is to create viable prospects for all locations within the next six to 12 months."
However, the plans are yet to be approved by VW group's powerful supervisory board, state of Lower Saxony (home of VW), and shareholders.
Job reduction
Half of job cuts expected in Germany
Blume revealed that half of the expected job cuts, estimated at around 50,000, would be implemented in Germany.
The other half would be international across some 170 companies.
He emphasized that the global job cuts plan was not a target but a "theoretical calculation" based on VW's costs which are "about 30% above the average of comparable companies."
Cost reduction
Executive board fully behind future plan
The executive board is "fully behind the future plan," which includes reducing VW's costs to be on par with its competitors.
Blume said he wants to rely on voluntary personnel measures as much as possible, such as phased retirement and mutual agreements, instead of forced job cuts.
He described factory closures as the "last and most costly resort."
Production shift
VW may shift production toward defense industry, electric vehicles
Blume hinted at a possible shift in VW's production toward the defense industry and electric vehicles for China.
He also noted that car manufacturing at the Osnabruck plant would end soon, possibly next year.
Meanwhile, plants in Emden, Zwickau, Neckarsulm and Hanover have no plans for manufacturing from 2030 onward.