BERLIN, Aug 26 - Volkswagen CEO Oliver Blume addressed employees at the automaker's Emden assembly site, urging increased savings efforts as part of the company's broad turnaround push. He said the work of reducing costs remains incomplete and emphasized that Volkswagen benchmarks itself against the best-performing locations across Europe.
Blume told staff: "This journey is not over. Because we not only measure ourselves against our own past performance. We measure ourselves against the best locations in Europe." He pointed to a stark gap on labor expenses, saying: "Labor costs today are more than double those of comparable European locations. And when it comes to factory costs, other plants are still significantly cheaper. This is not a criticism - it is the reality against which we must measure ourselves."
The Emden site, which produces electric vehicles in Volkswagen's home state of Lower Saxony, is among four factories at the company that currently lack a business plan extending beyond 2030. Blume is conducting a tour of Volkswagen sites this week with the stated aim of reassuring employees and building backing for the company's broad cost-cutting measures.
While stressing the need for savings, Blume has framed plant closures as an expensive last option rather than a first step. He also said Volkswagen would continue to pursue ways to secure the site's future if a viable plan cannot be put in place under current conditions, telling staff that the company's responsibilities would not end in that circumstance.
On the subject of continued efforts to preserve industrial activity and employment, Blume said: "We will fight for industrial prospects and jobs at our locations, with partners, with investors, and with new industrial solutions." His remarks underline a dual approach: pressing for internal cost reductions while seeking external support and alternative industrial arrangements to maintain operations.
The visit and comments come as Volkswagen moves to assess and align unit economics across its European manufacturing footprint, with Emden singled out as a location that must close significant cost gaps to secure its long-term commercial viability.
Context note: The remarks were made directly to Emden plant employees during Blume's site visit as part of a broader engagement with Volkswagen locations.