VW warns it has ‘a year, maybe two’ to adapt to lower demand
German carmaker Volkswagen has warned its staff that it has “one, maybe two” years to cut its spending and adjust its output to lower demand, as it ponders shutting factories in Germany for the first time.
At a briefing with staff this morning, VW warned that its main brand needs to make deep cost cuts if it is to succeed in the transition to electric cars.
Chief financial officer Arno Antlitz told workers, gathered at Volkswagen’s Wolfsburg headquarters:
“If we carry on like this, we won’t succeed in the transformation.
It is our joint responsibility to improve the cost efficiency of the German sites.”
Antlitz warned that Europe’s car market had shrunk after the pandemic and the company was facing a shortfall in demand of about 500,000 cars, equivalent to about two plants.
But the meeting was stormy – Reuters reports that staff whistled and shouted “Auf Wiedersehen” when Antlitz took to the stage.
