Volkswagen Rescue Plan 'Short on Specifics'
Labour opposition left CEO Oliver Blume without backing for proposed job cuts and plant closures as Volkswagen posted an 8.6% quarterly delivery drop.
- On Friday, labour representatives blocked CEO Oliver Blume's sweeping restructuring plan for Volkswagen Group, underscoring the challenge of overhauling Europe's largest automaker amid intensifying competition and rising costs.
- During a supervisory board meeting on Thursday, the committee voted 12 to seven against management's proposal, driven by labour opposition and the governance structure that gives union representatives and Lower Saxony a majority.
- Volkswagen posted an 8.6-per-cent drop in second-quarter deliveries, the steepest fall in four years, while sources indicate Blume's proposal included up to 100,000 job cuts and four plant closures.
- Industrial union IG Metall rallied workers across Germany on Thursday, urging management to safeguard production, while the works council demanded clarification on cost-cutting plans by the end of Friday.
- Analysts at Jefferies and Bernstein criticized the plan as lacking progress and specifics; Lower Saxony state premier Olaf Lies acknowledged the critical situation facing the automotive industry.
21 Articles
21 Articles
Volkswagen CEO Oliver Blume failed on Thursday in a Supervisory Board vote on the future of the Group. According to a report, it is mainly about two topics – namely restructuring and planned job cuts. Now, the executives have taken a position and reacted to the union's criticism. Oliver Blume confirmed on Friday the goal of repositioning the crisis-ridden German automaker. He spoke of the "most comprehensive realignment of the Group's history". …
The influential representatives of Volkswagen workers blocked a broad restructuring plan, said two sources of the company to Reuters on Friday (10), highlighting the challenge faced by the CEO, Oliver Blume, to reformulate Europe's largest assembler. Blume seeks to simplify the extensive structure of the German group, which faces increasing competition from China, billions of euros in costs related to US tariffs and concerns about the competitiv…
VW CEO Oliver Blume has failed for the time being with his savings plans, but the fight for the future of the German car industry is now really starting. Not only in Wolfsburg.
Oliver Blume wants to radically rebuild the car company, but leaves important things open. The communication of the board of directors causes horror in the workforce and politics.
According to a media report, VW CEO Oliver Blume's harsh austerity stance has initially failed on the Supervisory Board's veto. While tens of thousands of jobs and several German works are at stake, massive resistance to the plans is forming.
The savings program at Volkswagen causes anger and criticism. The most important employee representatives have now set an ultimatum to CEO Oliver Blume.
Coverage Details
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
