Volkswagen is preparing to spend €16 billion on sweeping cutbacks and the possible closure of plants
Kyiv • UNN
Volkswagen estimates the restructuring at €16 billion, including cuts of up to 60,000 jobs. The company is also considering the future of four plants in Germany.
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.
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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.