Volkswagen CEO Calls for Major Cutbacks

FRANKFURT (Reuters) – Volkswagen’s CEO, Oliver Blume, is advocating for significant changes in the German carmaker’s operations due to a shrinking European market and increasing competition.

In an interview with Bild am Sonntag, Blume mentioned, “the pie has become smaller, and we have more guests at the table.” He noted that fewer cars are being sold in Europe, while Asian competitors are aggressively entering the market.

On Monday, Volkswagen announced it is contemplating the unprecedented action of closing factories in Germany and revoking job guarantees at six plants. This move is part of a broader strategy to reinforce a €10 billion ($11 billion) cost-cutting initiative.