The Volkswagen Group wants to further significantly reduce its production capacities. CEO Oliver Blume is thinking about building a million fewer cars worldwide, he told the company Manager Magazine.
VW can currently build twelve million vehicles per year. Blume said that nine million vehicles a year are “sustainable.” That would correspond to a minus of 25 percent.
The downsizing could affect locations worldwide. VW had in Europe and China reduced production capabilities by one million vehicles each.
A decision on plant closures has not yet been made
“Excess capacity is not sustainable for our company in the long term,” said Blume. “And in today’s market and competitive situation, the volume planning of the past is unrealistic.” According to Blume, a decision has not yet been made as to whether plants have to be closed.
VW is scheduled to end vehicle production at the Osnabrück plant next year. The company management had already decided this in 2024. The Companies talk to defense companiesin order to possibly locate production there and take on employees.
Further job cuts possible
Volkswagen is cutting 50,000 jobs in Germanyto reduce its costs. “We have a clear plan for how we can reduce our capacities in a socially acceptable way,” said Blume about the job cuts.
The group does not have enough money to sustainably invest in models and technology. The manager therefore does not rule out further job cuts. “Our duty is to check everything carefully,” he said. “That is a fundamental part of our responsibility for this company.”