Bernhard claimed VW's key German plants were as much as 50 percent less productive than its competitor's facilities, leading to massive financial losses.
VW is particularly targeting its car parts operations, looking to sell off or close uncompetitive units.
As you can imagine, Bernhard's tough talk isn't going over well with German unions. The financial markets are taking the news well, though. VW shares rose 10 percent Friday, and were up over 5 percent by early afternoon today.