Volkswagen's DieselGate Cost Cutting Measures Starting To Misfire

As part of Volkswagen’s recovery strategy from Dieselgate, the German manufacturer has had to implement some drastic cost cutting measures to pay for its crimes. Consequently, this resulted in some 30,000 job losses, which was initially said to be instrumental to VW’s recovery. However, Reuters reports that labor leaders are accusing Volkswagen’s top executives of cutting jobs too rapidly, which could jeopardize the company even further.
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TheSteve - 2/14/2017 6:03:01 PM

+4 Boost

Labor leaders are there to preserve jobs.

VW is trying to stay alive (and stay relevant) after getting themselves into deep kaka, and having to pay many billions of dollars in buy-backs, fixes, fines, penalties, and compensation. And the bill is still growing!

You can see how the two might have some disagreements.

MrEE - 2/14/2017 6:48:07 PM

+3 Boost

and yet their global sales continue to rise.

MDarringer - 2/14/2017 8:08:29 PM

+1 Boost

With fire-sale pricing you can make any sales goal happen.

PUGPROUD - 2/14/2017 9:53:31 PM

+2 Boost

VW labor force is significantly higher than Toyota's though sales volume is close. It can afford to reduce labor force and still be competitive. The problem is that the German workforce is the largest, most costly and hardest to downsize.
They are in a "Catch 22" situation.