Volkswagen AG CEO Oliver Blume said additional cost-cutting measures are necessary at the company’s German operations, where labor costs remain more than double those at comparable European plants.
Speaking to workers at the Emden factory on Wednesday, Blume acknowledged past cost-reduction efforts but stressed the need for further action. The Emden plant is one of five German facilities under review for potential closure as Volkswagen aligns its production footprint with global competitiveness.
Blume emphasized that the company now benchmarks its German operations against the best-performing European units rather than historical internal standards. Labor costs at Volkswagen’s German factories exceed those of peers by over 100%, while other plants maintain lower overall manufacturing expenses, he noted.
The remarks come amid broader restructuring efforts at Volkswagen, which has faced persistent pressure to improve efficiency in its core European markets. The Emden facility, a key production site, is among the facilities under scrutiny as the company evaluates its long-term operational strategy in Germany.
