Volkswagen Cost-Cut Measures

Nothing definite. But according to a CNBC reporter, based on what the labor unions reported, they could shut down Dresden and Osnabrueck plant (min 6:00).

Dresden is expected to lead to a cost savings of 20 million euros a year. Going by that and the proportion of employees in each factory, we arrive at a cost-saving of around 153 million from Osnabrueck closure. However, the Dresden plant is very minor- according to Bloomberg, it has has no body manufacturing, paint shop or pressing plant, hence the cost savings from Osnabrueck closure could be much higher.

By the way the decision on whether to close the Brussels plant hasn’t been decided yet. Audi said today that an investor to take over the plant hasn’t been found.

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