Frankfurt (Germany), 25 Aug. (LaPresse) – The chair of Volkswagen’s works council, Daniela Cavallo, has strongly criticised the group’s board of directors, led by CEO Oliver Blume, during a staff meeting in Wolfsburg. In particular, confidence in Blume has been undermined, Cavallo said, according to those present at the meeting. “You cannot work with a CEO who does not tell his employees how things stand,” Cavallo stated, referring to management’s communication regarding the planned cost-cutting measures. Blume, however, reiterated the need for further action to reduce costs. “We must reduce complexity, systematically streamline our structures and cut costs,” said the Volkswagen CEO. The meeting at the group’s headquarters in Wolfsburg marked the start of a series of meetings at various Volkswagen plants, during which management will have to explain the cost-cutting measures to employees and answer their questions. In recent months, following the announcement of new cost-cutting measures, discussions have been underway within Europe’s largest automotive group regarding the future of tens of thousands of jobs and four plants. A meeting of the supervisory board is scheduled for early September.
Cars: Volkswagen works council chair: ‘Confidence in the board of directors has been undermined’
Frankfurt (Germany), 25 Aug. (LaPresse) – The chair of Volkswagen’s works council, Daniela Cavallo, has strongly criticised the group’s board of directors, led by CEO Oliver Blume, during a staff meeting in Wolfsburg. In particular, confidence in Blume has been undermined, Cavallo said, according to those present at the meeting. “You cannot work with a CEO who does not tell his employees how things stand,” Cavallo stated, referring to management’s communication regarding the planned cost-cutting measures. Blume, however, reiterated the need for further action to reduce costs. “We must reduce complexity, systematically streamline our structures and cut costs,” said the Volkswagen CEO. The meeting at the group’s headquarters in Wolfsburg marked the start of a series of meetings at various Volkswagen plants, during which management will have to explain the cost-cutting measures to employees and answer their questions. In recent months, following the announcement of new cost-cutting measures, discussions have been underway within Europe’s largest automotive group regarding the future of tens of thousands of jobs and four plants. A meeting of the supervisory board is scheduled for early September.