The mistakes that caused the economic problems at VW were made in the past, said the head of the Volkswagen-Group, Oliver Blume, the “Bild am Sonntag”. Weak market demand in Europe and significantly lower earnings from China revealed decades-old structural problems at VW. That’s what we’re tackling now.
“Our costs in Germany “We have to go down massively,” said the boss of Europe’s largest car manufacturer. VW is simply too expensive at home: “Our labor costs here, for example, are often more than twice as high as the average at our European locations. There is also a need for action when comparing our development and sales costs and other cost areas compared to the competition.”
VW is actually doing well: “Group sales are currently slightly higher than the previous year – our new products are well received, as evidenced by the increase in incoming orders in the third quarter.”
Blume also referred to the operating result, which fell by more than 20 percent after nine months due to high costs. That’s why renovation is needed. “The goal for cost and capacity adjustment is set.” Only the path to get there can be “flexibly designed.”
FDP calls for political restraint
Leading FDP representatives called for political restraint. According to the preliminary report, the head of the FDP parliamentary group, Christian Dürr, told “Welt” that it is not the job of politicians to give companies advice on their operational business. “Companies have to make decisions on the market and not according to political guidelines.”
Lower Saxony’s FDP state leader Konstantin Kuhle made a similar statement: “The state must reduce its political influence on the company.” A first step could be for SPD Prime Minister Stephan Weil and Education Minister Julia Willie Hamburg to make their seats available on the supervisory board. Green politician Hamburg rejected the allegations. “With the Lower Saxony state government on the supervisory board, VW has already experienced many successful years and decades, but has also mastered various crises. That will also be the case now,” she told the newspaper.