To say that Volkswagen is doing poorly would be an understatement considering the latest figures announced by the company and the latest news. While the company’s after-tax profits fell 63.7 percent, car sales also fell 8.3 percent showed a decrease. Profit in the first nine months of the year fell by 30.7 percentThe company’s revenue decline was 4.4 percent in the same period.

In conversation with Bild Volkswagen CEO Oliver Blume, ‘Decades-old structural problemsHe stated that sales in Europe were down due to “” and that they could not find what they expected in China. The 56-year-old CEO has rolled up his sleeves to resolve this situation.

High personnel costs and declining sales were the cause of the crisis

Blume, in his statement ‘Here for example [Almanya’da] Our labor costs are below the average of our other European locations. usually more than twice. There is also a need for action on our development and sales costs and other cost areas compared to our competitors. “The cost and capacity adjustment target has been established.” he said.

Under a huge financial burden after the Dieselgate scandal German giantAfter that he couldn’t show the performance he expected. Another name supporting the cost regulations announced by Blume is the head of the company’s HR department. Gunnar It came from Kilian. Kilian stated that they must roll up their sleeves to restructure quickly and that the workforce must accept the cuts. The company received from the union 7 percent increases demand He refused and proposed a 10 percent reduction in salaries. The company plans to implement methods such as ending holiday pay and reducing vehicle sales.