Volkswagen CEO looks to avoid plant closures as automaker moves to cut costs - AP News
Volkswagen CEO Oliver Blume is seeking to cut costs and improve efficiency without resorting to plant closures. The automaker is facing intense competition in China and is currently streamlining its model lineup to improve profitability.
Why it matters
As a major global automaker, Volkswagen's struggle to balance cost-cutting with labor stability reflects broader challenges in the transition to new market demands.
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BERLIN (AP) — Volkswagen’s CEO indicated in comments published Sunday that he’s trying to avoid closing plants as he seeks to turn around the automaker’s performance .
The Wolfsburg, Germany-based company faces pressure to cut costs at home and increasingly intense competition in the lucrative Chinese market , in particular.
Last week, Volkswagen said its “fundamental realignment” over the past three years had reached its next phase, announcing plans to streamline the model lineup by up to half.
It didn’t provide specifics, and questions remain over how else it will cut costs. There has been renewed speculation about the future of several plants in Germany.
“There are more intelligent solutions than closing plants,” CEO Oliver Blume told the Bild am Sonntag newspaper.
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