Volkswagen to Close Four Plants in Germany: Management Announces When Production Will Cease
31 August 19:33
Volkswagen CFO Arno Antlitz stated that the company does not see economically viable continued production at its four German plants after the early 2030s due to a significant cost disadvantage compared to other European manufacturers, according to Reuters, as reported by "Komersant Ukrainian".
“Amid falling sales and profits, Volkswagen is undertaking a large-scale restructuring: it plans to halve its model lineup, potentially cut up to 100,000 jobs (more than 15% of its workforce), and save €1 billion by 2030. The report also notes the first production halt in 88 years at the Dresden plant,” the report states.
German automaker Volkswagen does not have an economically viable plan for continued production at its four plants in Germany, warned Chief Financial Officer Arno Antlitz.
Antlitz made this statement during a visit to the plant in Hanover on the eve of a board of directors meeting scheduled for this week. He cited a significant cost gap compared to other plants in Europe as the main obstacle to the plants’ continued operation.
“Due to the significant cost difference compared to other European plants, we currently do not see economically viable continued production for the four German sites after the current product line is phased out in the early 2030s,” he said.
At the same time, he assured that Volkswagen would do everything possible to preserve jobs at its plants as effectively as possible.
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Earlier, CEO Oliver Blume stated that the German automaker intends to avoid closing production sites, despite the company’s difficult situation.
Meanwhile, against the backdrop of a significant drop in sales and profits for Europe’s largest automaker, Volkswagen’s management announced plans to carry out the most extensive restructuring in the company’s history. Specifically, they announced that the model lineup would be cut in half, and the number of trim levels would be reduced by 75%.
Also, according to media reports, Volkswagen is considering cutting up to 100,000 jobs worldwide, which represents more than 15% of the company’s workforce. Previously, Volkswagen had stated its intention to reduce the number of management positions and consolidate production platforms in order to save €1 billion ($1.2 billion) by 2030.
Earlier, it was reported that the automaker would halt production at its Dresden plant for the first time in its 88-year history.
It was also reported that Volkswagen plans to close several plants and cut tens of thousands of jobs in Germany.
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