Investing.com – Volkswagen’s (ETR:) management team is due to take pay cuts amounting to up to more than 300 million euros by 2030, German paper Braunschweiger Zeitung reported on Wednesday, citing comments by VW human resources board member Gunnar Kilian.

The carmaking giant’s board would opt to slash their salaries by a greater proportion compared to other management or staff members, the paper said. Kilian declined to provide more details.

In December, VW and its unions agreed to bring down the size of the company’s workforce by over 35,000 jobs — or roughly a quarter of total headcount — by 2030. Capacity at VW’s German manufacturing facilities would also be slashed by 734,000 units, although none of its plants would be shuttered.

Still, output at VW’s key Wolfsburg plant would be cut to two assembly lines from four, and the future of factories in the German cities of Osnabrueck and Dresden remained uncertain. The firm said it is exploring options for the Dresden site and considering repurposing the Osnabrueck factory.

Unions had called on leadership at VW to agree to pay cuts during the negotiations, saying they were at fault for VW’s recent issues. The collective wage agreement halted raises for workers over the next four years and scrapped or decreased some bonuses.

The moves are expected to help reduce expenses over the medium term by 15 billion euros per year, including 1.5 billion in labor costs.

Germany-listed shares in VW have shed more than 20% of their value over the past one-year period, as the group struggles with sluggish demand in Europe and low-cost domestic rivals in China, the world’s largest automotive market. The company has previously outlined plans to develop cut-price electric vehicles in a bid to address its Chinese competition, which has grown to even threaten VW’s market share in Europe.

Last May, VW warned that European automakers have between two to three years to build up its offerings to compete with their Chinese peers, or risk the survival of the sector.

(Reuters contributed reporting.)


Source link

Best Brokers

Unmatched trading fees, generous bonuses, top notch Regulation Frame.

T&Cs Apply

Risk disclosure: All investments involve a degree of risk of some kind. Trading financial derivative products comes with a high risk of losing money rapidly due to leverage.

Top-Tier Regulations. Unmatched Spreads and Commissions. Trading View is available.

T&Cs Apply

Financial Spread Trades and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.7% of retail investor accounts lose money when trading CFDs with this provider.

Modern and Intuitive Interfaces, Solid Regulatory Frame, and excellent Trading Fees.

T&Cs Apply
Risk warning: Trading derivatives is highly speculative, carries an inherent risk of loss and is not suitable for all investors. Before trading, you are strongly advised to read and ensure that you understand the relevant risk disclosures and warnings.

Highly Regulated. Low Spreads and Commissions. Vast Account Options.

T&Cs Apply

Risk Warning: Trading derivatives carries significant risks. It is not suitable for all investors and if you are a professional client, you could lose substantially more than your initial investment.