Volkswagen lays off employees to fight against Chinese brands! Stopped production of many models, and officially announced: there is no capital operation

A few days ago, Zhidian Travel learned that this Monday (November 27) Volkswagen German automaker said that it is currently considering using the opportunity of employee retirement to lay off employees in order to achieve the profit target announced by CEO Oliver Blume in June last year. According to Thomas Schafer, head of the Volkswagen brand, 2024 will be a difficult year for Volkswagen, as multiple markets are under heavy pressure, EV orders are not as expected, and there is not enough capital to operate without significant cuts.

Also on November 27, Volkswagen leadership also spoke with employee representatives to discuss the content of the transformation plan, which aims to achieve cost savings of $10 billion by 2030 and operating margins of 9%-11%. CEO Oliver Blume also revealed in June that the program could improve profitability in the face of competitors, especially Chinese competitors who are grabbing market share with lower market prices, especially in the electric vehicle sector.

In addition, due to the "weak" demand for the all-electric models of the Volkswagen brand, the brand also suspended the production of the ID.3 and Cupra Born models at the Zwickau plant from October 2 to October 13, and the production of the ID.3 models at the Dresden plant from October 2 to October 16. According to overseas media, the Zwickau plant is currently accelerating production of the ID.4, ID.5, Audi Q4 e-tron and Audi Q4 Sportback e-tron models due to limited production capacity.