Volkswagen ( OTCPK:VLKAF ) ( OTC:VLKPF ) ( OTCPK:VWAGY ) ( OTCPK:VWAPY ) has “one or two years” to turn around its eponymous brand, Chief Financial Officer Arno Antlitz said this week as the German auto giant considers closing its first factory in the country. Reuters reported..
Antlitz is He reportedly told about 25,000 employees at the company’s Wolfsburg headquarters on Wednesday that VW needed to work with management to cut spending to help it weather the transition to electric cars, prompting jeers of “goodbye” in German.
The finance chief was quoted as saying that Europe’s car market is shrinking in the wake of the coronavirus pandemic and Volkswagen faces a demand shortfall of 500,000 vehicles – the equivalent of two factories.
“The market is not there,” he said, adding that he does not expect sales of the VW brand to recover and that the company has “a year or two” to cut spending and adjust production.
“We’re not going to get any more checks from China,” Chief Executive Oliver Bloom said, according to a person who attended the meeting. China is Volkswagen’s largest market.
Daniela Cavallo, president of the works council, was quoted as saying Volkswagen management had “seriously damaged its credibility.” Reuters reported that the IG Metall union has not ruled out the possibility of a labor strike and sees no reason to lower its wage demands in upcoming contract negotiations.
“Management has broken a big taboo, but the workers are ready to respond if we ask,” Cavallo said, reportedly vowing to prevent the plant’s closure.
According to Reuters, Cavallo asked Blume to explain why Volkswagen plans to prioritize a 5 billion euro ($5.54 billion) partnership with U.S. electric car maker Rivian (RIVN) over German jobs.
A spokesman for Chancellor Olaf Scholz was quoted as saying the chancellor had spoken to Volkswagen’s management and works council and was “clearly aware” of the carmaker’s importance.
