Volkswagen AG (ETR:VOWG_p) CEO Oliver Blume has highlighted the need for significant cuts in the company’s operations in Germany, citing a shrinking European automotive market and increasing competition. “The pie has shrunk and we have more guests at the table,” Blume said in a recent interview with Bild am Sonntag, a metaphor for the challenges facing the company.Blume noted that car sales in Europe are in decline and new competitors, particularly from Asia, are making strong inroads into the market. That competitive pressure has led Volkswagen to consider radical measures, including potentially closing factories in Germany and ending job guarantees at six of its plants. The assessments are part of the company’s broader cost-cutting program, which aims to save 10 billion euros ($11 billion).
Volkswagen said on Monday that the steps are part of a strategy to adapt to changing market conditions in Europe. The proposed measures are an unprecedented move for the German carmaker and reflect the urgency of the situation, which is facing a tighter and more competitive market environment.
