Volkswagen's VW Brand Faces Job Cuts Amidst Declining Competitiveness

Volkswagen's 10 billion euro savings program will involve staff reductions as the company's brand chief, Thomas Schaefer, warns that high costs and low productivity have made its cars uncompetitive. The German carmaker is currently in negotiations with its works council over a cost-cutting scheme at its VW brand, which is the first step in a company-wide effort to improve efficiency during the transition to electric cars. While the company plans to reduce its workforce through agreements on partial or early retirement, the majority of the savings goal will be achieved through measures other than personnel reduction.