[Responding to the Challenge from Chinese Car Manufacturers: Volkswagen to Cut 50,000 Jobs]
On September 3, the Volkswagen Group Board of Directors formally approved an optimization reform plan, which includes up to 50,000 job cuts and the closure of four vehicle manufacturing plants within Germany.
The initiative was proposed by Group CEO Oliver Blume, aimed at enhancing corporate competitiveness, addressing market pressures from Chinese automakers, and mitigating the negative impacts of U.S. tariff policies.
Volkswagen stated that the reform will eliminate approximately half of its vehicle model lines and reconfigure production capacity at the Emden, Zwickau, Hanover, and Neckarsulm plants. The group acknowledged a surplus production capacity of about 500,000 units annually in the European market.
Employee representatives hold half the seats on the supervisory board and had previously criticized the reform measures; however, they ultimately agreed to the plan on September 3. Daniel Carvalho, Chairman of the Works Council, stated that this plan is a necessary step for ensuring the long-term survival of the group.
Original article: toutiao.com/article/1875365908924416/
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