A day after Renault's much-anticipated new strategy turned out to be little more than "build it, and they will come," Volkswagen announced a stunning restructuring plan for its VW brand that could see 20,000 jobs cut in the next three years.
Although the company said the job cuts could be accompanied by a reduction in production capacity, CEO Bernd Pischetsrieder said he had no plans to shut any plants. The key objectives of the restructuring programme are:
The market rewarded VW with an 8 percent increase in its stock price after the announcement, marking a three-year high.
Although the company said the job cuts could be accompanied by a reduction in production capacity, CEO Bernd Pischetsrieder said he had no plans to shut any plants. The key objectives of the restructuring programme are:
- the elimination of productivity deficits, especially at vehicle assembly plants
- running plants at full capacity, including capacity adjustments where necessary
- "more competitive personnel expenses"
- a reorganisation of component production.
The market rewarded VW with an 8 percent increase in its stock price after the announcement, marking a three-year high.
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