The deep crisis at the VW Group is forcing management to launch a radical cost-cutting programme, writes Tagesschau on 3 September.
According to the report, amid challenging conditions including rising energy prices and high production costs, there are doubts about whether Europe’s largest carmaker will be able to regain its position.
Experts have expressed concern about Volkswagen’s future, especially in light of possible plant closures in Germany and job cuts. Investment lawyer Klaus Nieding said the stock market reacted positively to the news of the cuts, as it perceived them as a step towards improvement. “Any cost-cutting program is always viewed positively.”he says. However, he said many of the company’s employees are feeling anxious and worried about their jobs.
Automotive expert Jürgen Pieper criticises VW’s lack of bright ideas and solutions that could get the company out of the crisis. He says that the frequent changes in management are a sign of deep-seated problems within the group. “There has been no significant progress in recent years and Volkswagen continues to lose market share.” – says the expert.
Volkswagen has been facing a crisis since the diesel scandal that broke out nine years ago. The company’s shares then fell sharply and its value has not returned to its previous level since. The problems have been compounded by a slow response to increasing competition from Chinese electric vehicle manufacturers. Despite recent sales successes for electric vehicles such as BMW, German carmakers are generally lagging behind in this area.
Source: Rossa Primavera
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