Volkswagen Group Announces 50% Cuts To Model Range, up to 75% to Configuration Options, More
Volkswagen will trim its lineup by up to half and cut annual output to 9 million vehicles as it faces union and lawmaker resistance.
- On Thursday, Volkswagen held a tense supervisory board meeting, announcing plans to reduce its model lineup by half and cut production capacity to 9 million vehicles annually, though management stopped short of confirming immediate job cuts.
- Henning Gebhardt, partner at HollyHedge Consult, described Volkswagen as facing a 'perfect storm' on Friday, citing intense Competition from Chinese automakers, German tariffs, and a stock price down more than 30% so far this year.
- Reports suggest Volkswagen is weighing up to 100,000 job cuts and closure of four German plants: Hanover, Zwickau, Emden, and the Audi facility in Neckarsulm, which would double the 50,000 job cuts previously announced.
- The General Works Council and German industrial union Metall have vowed to resist these measures, with employees staging protest events outside the Zwickau Volkswagen Plant on Thursday to demonstrate against the potential restructuring.
- Analysts at Jefferies noted on Thursday that the rescue plan provided 'limited new information,' as the firm faces the most radical overhaul in its nearly 90-year history, currently opposed by German lawmakers and labor unions.
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39 Articles
VW to halve model range, silent on 100,000 job cuts
Volkswagen has announced plans to gut its sprawling product range as it fights the worst crisis in its history. The carmaker will cut its model lineup by up to half over the coming years, CNBC reports. The group will also shrink production capacity to nine million vehicles a year. That is well below the 12 million […] This story continues at The Next Web
A plan of twelve initiatives has been presented up to 2030 with sharp cuts in the range, variants and productive capacity. The affected plants or jobs are unknown. Read
The executive board of the German group presented a “future plan” with 12 initiatives and a goal to 2030. The reduction of models and the reduction of installed overcapacity are two of its central axes. The statement does not detail a layoffs plan.
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