The tariff crisis, the rise of competitors from China and an outdated production model mean that the German Volkswagen Group is now facing the biggest crisis in the corporation's history. CEO Oliver Blume sent a statement to staff across all divisions of the corporation last week, confirming that cuts of up to 100,000 jobs were being considered, of which 50,000 have already been agreed with the trade unions and staff representatives.
"We are currently assessing, across all brands, companies and regions, how many adjustments are actually necessary and feasible," he states in the document, to which Reuters has had access.
The memo also indicates that "smart solutions" are being assessed to ensure the continued operation of the group's four factories in Germany (Emden, Hanover, Zwickau, and Neckarsulm), and that as things stand, "they cannot confirm competitive use cases for the 2030s".
The company hopes to strike a balance by announcing plans to further reduce its production capacity and gradually halve its extensive model range. However, according to experts, this would not provide a sufficient solution either. "Of course, it is understandable that not everything has been planned down to the last detail and that certain issues still need to be discussed and assessed in greater depth," Blume said in his message to staff. "There will undoubtedly be further meetings at which we will work hard to find the best solutions."