FRANKFURT (Reuters) – Volkswagen has so far not presented a plan for how to make its namesake brand more competitive, the head of the group’s works council said in a handout to staff, adding management remained solely focused on labour costs.
The comments by Daniela Cavallo come as Europe’s top carmaker and powerful union fight over potential factory closures and job cuts as part of the group’s efforts to lower costs, with the second round of negotiations scheduled for Oct. 30, the day Volkswagen will release third-quarter results.
“The Board of Management has still not presented a coherent overall concept for how it intends to strategically lead Volkswagen into the future with the right products, processes and plans,” Cavallo said in the handout seen by Reuters.
“Instead, it continues to focus solely on issues such as labour and factory costs.”
The statement reflects growing fears among workers over potential staff cuts, something Volkswagen declines to rule out as it struggles to find ways to adjust its set-up in Europe to lower demand and a shrinking market.
Workers will hold gatherings at several of Volkswagen’s factories in Germany, including at the carmaker’s headquarters in Wolfsburg, on Oct. 28, to inform staff about the current situation, Cavallo said.
(Reporting by Christoph Steitz; Editing by Miranda Murray)
