Oliver Blume, Chief Executive of the German Volkswagen Group, plans to cut up to 100,000 jobs worldwide over the next few years and to cease production at four of the group’s plants in Germany, according to Manager Magazin, citing sources.
The carmaker’s chief also plans to reduce investment by approximately 15 per cent over the next five years.
According to the sources, Blume and VW’s Chief Financial Officer, Arno Antlitz, intend to completely restructure the company. In particular, it is planned that the Volkswagen brand and component manufacturing plants will be spun off from the main group into separate entities.
In the medium term, VW intends to close production facilities in Hanover, Zwickau and Emden, as well as the Audi plant in Neckarsulm. Production will also cease once the models manufactured there are phased out.
VW’s share price is up 0.5% during Friday’s trading. The carmaker’s market capitalisation has fallen by almost 25% since the start of the year (to EUR39 billion), whilst the DAX share index has risen by just over 1%.