business
Volkswagen CEO Says Intelligent Solutions Exist to Avoid Plant Closures
Abc News reported that Volkswagen chief executive Oliver Blume is pursuing alternatives to factory shutdowns while addressing performance issues. The Wolfsburg-based company faces domestic cost pressures and competition in China. Last week it announced plans to cut its model lineup by up to half.
Jul 12, 4:56 AM·1m read3 sources
Abc NewsAudio version
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Volkswagen chief executive Oliver Blume said he is seeking alternatives to plant closures as the company works to improve results, Abc News reported Sunday. Blume told the Bild am Sonntag newspaper that more intelligent solutions exist than closing plants.
He noted that a cost-cutting program already produced results, with factory costs in Germany falling an average 20 percent last year, which he described as strong progress.
The Wolfsburg, Germany-based company faces pressure to reduce expenses at home and increasingly intense competition in the Chinese market. Last week Volkswagen announced that its fundamental realignment over the past three years had entered a new phase, with plans to streamline the model lineup by up to half. The company provided no further specifics on cost measures.
Renewed speculation has emerged about the future of several plants in Germany. Blume said Volkswagen products remain very popular but generate too little profit, requiring continued reductions in all kinds of costs.
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CorroborationModerate · 3 sources
