Volkswagen CEO Seeks Alternatives to Plant Closures

Volkswagen chief executive Oliver Blume said he is seeking alternatives to plant closures as the company works to improve results. 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.

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.

Blume said Volkswagen products remain very popular but generate too little profit, requiring continued reductions in all kinds of costs.