Labor Tells Volkwagen "Not So Fast" With Proposed Budget Cuts

Volkswagen faces a battle with workers over cost cuts at its biggest car division, a central plank of its drive to meet profit margin targets.

VW CEO Martin Winterkorn today called for swift results when outlining an efficiency drive to a gathering of more than 20,000 workers at the automaker's base in Wolfsburg, Germany. "Over the short-term, we urgently need more efficiency and higher profit," he said. "Without an appropriate financial basis, any strategy must and will fail."

Profitability gains at the VW brand are not keeping pace with surging deliveries for the group, which is set to meet a 10 million vehicle sales goal in 2014, four years early.

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MattDarringer - 7/23/2014 12:01:56 PM

+2 Boost

This is what happens when you give the union 50% control of the company. VW bought itself an implosion by being union friendly.

USNA1999 - 7/23/2014 7:03:28 PM

0 Boost

I hate to say but these unions will ruin all these auto companies. They are on the same path as GM.

chewy - 7/24/2014 11:44:49 PM

+1 Boost

The pressure of being a public company. You can be rolling in dough but that isn't good enough for your stock price. Sure there are benefits to some pressure but cost cutting R&D doesn't sound like the greatest idea.