Volkswagen's (VW) chief executive Oliver Blume has told employees that around half of any further job reductions at the carmaker will need to fall on Germany.
According to a Bloomberg report, addressing thousands of staff at the Wolfsburg site on Tuesday (25 August), Blume said the reductions were unavoidable given that the company's fixed costs run 30% above those of rival manufacturers.
He clarified that the frequently mentioned figure of 50,000 further job losses worldwide is a theoretical estimate rather than an agreed goal.
The company is currently developing measures to reduce annual European production capacity by 500,000 vehicles, streamline management structures, and trim its range of models and equipment options.
Employee representatives have cautioned that up to 140,000 roles could ultimately be affected.
That total includes about 50,000 cuts already agreed in Germany, another 50,000 positions management has suggested could be needed globally, and roughly 40,000 jobs at four German factories whose long-term status remains unresolved.
Staff had previously accepted substantial job losses, only to learn that additional cuts are now being sought.
The situation is especially tense at the Emden, Hanover, Zwickau and Neckarsulm facilities, where Blume said the company cannot currently secure competitive production commitments through to the next decade.
VW aims to establish workable futures for each of its plants within six to twelve months, with Blume calling factory closures the costliest and most extreme option available.
Sites have up to a year to put forward alternative solutions, leaving room for a possible settlement involving voluntary departures, reduced output, and repurposing of at-risk locations.
Relations between management and labour remain fraught.
Works council leader Daniela Cavallo said separately that confidence in leadership has been "damaged – not irreparably, but damaged."
Porsche SE, which controls VW through the Porsche-Piëch family, has pressed management to act more quickly, describing the carmaker as being at a pivotal juncture.
Under VW's governance rules, Blume cannot impose cuts without approval from labour leaders and Lower Saxony, which holds veto power over key decisions.
The carmaker's earnings have suffered amid weaker Chinese sales, elevated German costs and factory underutilisation, requiring at least €10bn ($11.66bn) in overhead reductions.
First-half operating profit fell 11.6% to €5.93bn, while revenue edged down 0.2% to €158.10bn.
"VW's CEO says Germany to bear half of additional job cuts – report" was originally created and published by Just Auto, a GlobalData owned brand.