1 week Ago
Stuart Franklin Volkswagen ( OTCPK:VLKAF )( OTC:VLKPF )( OTCPK:VWAGY )( OTCPK:VWAPY ) has “one, maybe two” years to turn its namesake brand around, Chief Financial Officer Arno Antlitz said this week as the German auto giant considers its first plant closures in the country, Reuters reported . Antlitz was met with heckles of “goodbye” in German as he told some 25,000 workers at the company’s headquarters in Wolfsburg on Wednesday they needed to work with management to help it slash spending to help the VW survive its shift to electric vehicles, according to the report. The finance chief was quoted as saying the European car market had contracted after the COVID-19 pandemic and Volkswagen was looking at a demand shortfall of 500,000 vehicles, which he said was about equal to two plants.
“The market is just not there,” he reportedly said, adding he did not anticipate the VW brand’s sales to recover and it had “one, maybe two” years to cut its spending and adjust output. “There are no more checks coming from China,” Chief Executive Oliver Blume said, according to a person reportedly at the meeting. China is Volkswagen’s biggest market.
Works council President Daniela Cavallo was quoted as saying that Volkswagen management “massively damaged trust.” The IG Metall union did not rule out labor strikes and did not see reasons to cut its wage demands for upcoming contract talks, Reuters reported. "Management has broken a taboo in a major way, and workers are prepared to be there when we call on them," Cavallo reportedly said, vowing to block the closures of plants.
According to Reuters, Cavallo urged Blume to lay out why Volkswagen was planning to prioritize its 5 billion-euro ($5.54 billion) partnership with US EV maker Rivian ( RIVN ) over German jobs. A spokesperson for Chancellor Olaf Scholz reportedly said the leader had spoken with Volkswagen’s management and works council and “is clear on the significance” of the automaker.
More on Volkswagen AG Volkswagen: Benefit From High Dividends While Price Appreciates Volkswagen's High Yield Backed By Undervalued Brand Portfolio Volkswagen Q2: This Is A Bargain The UAW gains more inroads in the South at an EV battery plant in Tennessee Volkswagen says German plant closures are possible.
