Volkswagen intends to intensify cost reduction and achieve a 20% reduction by the end of 2028, Manager Magazine reports. Previously, the anti-crisis plan provided for softer deadlines.
The interim results of the program, which includes the reduction of 35,000 jobs and the closure of three plants in Germany by 2030, have not yielded the expected effect. According to the publication, Germany's largest industrial enterprise plans to significantly tighten austerity measures in the next two years. Otherwise, the company may face the risk of bankruptcy.
The situation is affected by the increase in energy prices in Germany after the abandonment of gas from the Russian Federation. This has led to higher production costs for industrial goods. In addition, local austerity measures at sites in Wolfsburg, Emden and Zwickau have not met expectations. The closure of the most unprofitable car factories is still being considered as a possible option.