Volkswagen management held a tense one-on-one meeting with employees on Wednesday, stressing the need to take on a “common responsibility” to try to turn around the situation of the crisis-hit German car giant.
The showdown comes shortly after the automaker said it could no longer rule out closing plants in its home country of Germany, a move that had previously been considered off the table. Volkswagen Group CEO Oliver Blume said Wednesday that the company’s current situation “affects all of us emotionally, including me personally.”
Annual vehicle sales in Europe have declined compared to the period before the COVID-19 pandemic – about 2 million fewer cars are expected to be sold each year in the European market, compared to the pre-pandemic period, management said. Volkswagen holds about a quarter of the European market share, it said, meaning the decline translates into an annual shortfall of 500,000 vehicles in sales for the company, equivalent to the combined sales typically achieved by two of its plants.
Volkswagen said Monday it believes its job protection agreement, in place since 1994 and protecting workers in Germany until 2029, may have to end.