Volkswagen's Competitive Edge

FRANKFURT (Reuters) – Volkswagen (ETR:VOWG_p) has not yet outlined a plan to enhance the competitiveness of its namesake brand, according to the head of the group's works council, Daniela Cavallo. She noted that management remains focused primarily on labor costs.

These comments come amid ongoing negotiations between Europe's leading carmaker and powerful unions over possible factory closures and job reductions as part of their cost-cutting efforts. The second round of negotiations is set for October 30, coinciding with Volkswagen's release of third-quarter results.

Cavallo emphasized, "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."

Instead, management continues to concentrate on issues related to labor and factory costs, which has generated anxiety among workers about potential job cuts. As Volkswagen grapples with decreasing demand and a shrinking market in Europe, the possibility of staff reductions remains on the table.

In response, employees plan to gather at various Volkswagen factories in Germany, including the headquarters in Wolfsburg, on October 28 to discuss the current situation.