Volkswagen CEO Oliver Blume dismisses the possibility of closing the group’s plants. In an interview with the Sunday edition of Bild, he reiterates the key message of the company’s strategy: there are smarter solutions to reduce costs. His words come amid a tense climate with the metalworkers’ union, fueled by rumors that emerged in recent days from the German press, according to which four plants in Germany could be closed by 2031. In this context, Blume tries to shift the discussion from the topic of cuts and production stops to that of rationalization. And he does so by emphasizing that the goal is to improve efficiency without compromising industrial continuity.
Blume and Volkswagen’s dark future
Blume recalls that last year Volkswagen managed to reduce costs in German plants by an average of one fifth, calling that result a great progress. “Our products are very popular, we just don’t make enough from them,” he explained, adding that the priority is to continue cutting costs in every area. The strategic indication also concerns the need to increase sales volumes per model, which is why the company is systematically rationalizing its product portfolio: relatively high labor and energy costs, along with bureaucratic constraints, remain among the factors weighing on competitiveness, while external pressure is growing.
No plant closures?
The CEO then highlights a difficult and risky operating environment, marked by geopolitical tensions, trade barriers, regulations, and strong competition. Added to this is the decline in demand from China and the impact of US tariffs on the margins of luxury brands Audi and Porsche. But beyond economic reasons, the success of the restructuring plan depends on the consent of the workers’ representatives, who sit with 10 members on the supervisory board. According to the media, the project was rejected by 12 of the 19 members during a meeting held Thursday in Wolfsburg. The works council also reported a huge loss of trust in Blume due to the leak of plans before the discussion at the board meeting.
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