Orders shaky

VW crisis has domestic suppliers trembling

Group CEO Oliver Blume wants to drastically accelerate the cost-cutting course by 2026, as VW is producing 500,000 fewer cars than necessary this year.(Bild: APA/AFP/Tobias SCHWARZ)

In front of almost 10,000 angry employees in Wolfsburg, VW Group CEO Oliver Blume announced an intensified austerity program until 2026. Because sales are sluggish, there is a threat of layoffs and plant closures. Dozens of Austrian suppliers are now also fearing for their orders. 

So far, ten billion euros have already been saved, but now a further four billion may be necessary because sales figures are weakening more than expected, especially for the main VW brand. "In this environment, we must now act consistently," said Volkswagen Group CEO Oliver Blume. This year, 500,000 fewer cars will be sold than would be necessary to fill the plants to capacity, the CFO said, citing concrete figures. This would correspond to the production of two plants.