Everything even worse?

VW boss Blume announces “further measures”

(Bild: AFP/THOMAS KIENZLE)

Everything seems to be even worse than initially assumed at ailing car manufacturer VW. Group CEO Oliver Blume has announced "further measures". Because: things cannot continue as they are now.

Following the Volkswagen Group's announcement that it would be further tightening its austerity measures with job cuts and possible plant closures at the core VW brand, Group CEO Oliver Blume describes the poor economic situation at Volkswagen as alarming.

The situation at the VW brand is "so serious that you can't just let everything continue as before", Blume told Bild am Sonntag.

"Fewer vehicles are being bought in Europe. At the same time, new competitors from Asia are forcing their way into the market. The pie has gotten smaller and we have more guests at the table," the Group CEO continued.

Austria affected by VW plight
The entire European automotive industry is in a very challenging situation that has never existed before. "And the economic environment has become even tougher, especially for the VW brand." The problems in the German car industry are also affecting Austria, which has a large supplier industry that supplies the major German car manufacturers in particular.

Volkswagen has established profit programs in all brands and companies, according to Blume. At VW, however, the cost reductions are currently not enough. "My colleagues, VW CEO Thomas Schäfer and Thomas Schmall, are therefore working with their teams on further measures," added Blume. He did not say what these might be.

Germany as a location is not wavering
According to Blume, there will be no layoffs: "We are firmly committed to Germany as a location, because Volkswagen has shaped entire generations. We have employees whose grandfathers already worked at Volkswagen. I want their grandchildren to still be able to work here."