Management of the Volkswagen car company clashed with workers today, stressing the need to take joint responsibility in an attempt to turn things around at the crisis-hit German car giant.
The clash comes shortly after the carmaker signaled it could no longer rule out the possibility of closing plants in its home country of Germany, a measure previously considered ruled out, reports Mina, citing SEEbiz.
Employees are protesting potential business plans, waving union flags and placards with slogans saying management’s mistakes are not their fault and calling on leaders to finally do their jobs, according to CNBC.
“For some time now, we have been spending more money on the brand than we are earning. It’s not going well in the long run,” Volkswagen Group Chief Financial Officer and Chief Operating Officer Arno Antlitz told employees, according to comments shared by Volkswagen.
He explained that annual vehicle sales in Europe have fallen compared to the period before the Covid-19 pandemic and should remain lower than that baseline.
Antlic said that he expects that in the future, about two million fewer cars will be sold on the European market every year compared to the period before the pandemic.
Antlic estimates that Volkswagen holds about a quarter of Europe’s market share, meaning the decline translates into a 500,000 annual shortfall in the company’s vehicle sales, equal to the combined sales typically achieved by its two plants.
Volkswagen said on Monday that it believes its employment protection agreement, which has been in place since 1994 and protects the workforce in Germany until 2029, may have to end.
Speculation about the closure of the Volkswagen factories in Osnabreck and Dresden intensified on Tuesday.
“Our joint responsibility is to improve the cost efficiency of the German locations in particular. We need to increase productivity and reduce costs,” said Antlic.
He added that they still have a year, maybe two, to change things, but that they have to use that time.
Source: Biznis.rs
Photo: Archive Autoblog.rs / Volkswagen
Source: autoblog.rs
