Volkswagen estimates the cost of the largest restructuring in its history at approximately €16 billion ($18.6 billion), a significant portion of which will go toward cutting tens of thousands of jobs. Reuters reports this, citing a source familiar with the matter, writes UNN.
Details
Europe’s largest automaker plans to cut up to 60,000 jobs worldwide. The related costs alone could reach approximately €10 billion.
Volkswagen may spend another approximately €6 billion on restructuring production in Germany. The gradual winding down of production at plants in Emden and Zwickau is estimated at approximately €1 billion for each, while the costs for Neckarsulm and Hanover are estimated at €2 billion each.
Jaguar Land Rover confirms job cuts to save $2.3 billion05.09.26, 20:29
The company is considering various options for the future of 4 German plants, whose models will be gradually discontinued over the next decade.
Volkswagen attributes the large-scale restructuring to intensifying competition from Chinese automakers, high tariffs, and excess production capacity. A company representative declined to comment on the €16 billion cost estimate.
Mercedes-Benz threatened to close a plant in Germany and relocate production05.09.26, 22:25