I=7, VW brand
Volkswagen board members want more cost cuts, Handelsblatt reported
- Concerns are growing among Volkswagen board members that the cost cut measures agreed with the union at the end of 2024 will not be enough to turn around the brand, Handelsblatt reported citing sources familiar with the matter.
- As such, further cost cut measures are needed.
- Handelsblatt pointed out that the company has pushed back on its operating margin target, aiming to achieve the 6.5% target in three or four years instead of next year.
- Volkswagen declined to comment on the report.
Assessment
This makes sense given a recent article that said wage cuts are expected to fall by 6% from 2027. Also, based on the collective agreement details, most of the cost-saving measures will likely come in 2030. But it’s good to see the management championing for more cost cuts.