Volkswagen Group CEO Oliver Blume faced fierce opposition from workers during his address at the company's main plant in Wolfsburg this week, as he defended potential cost-cutting measures including plant closures and job cuts.
Speaking to approximately 20,000 employees at the Wolfsburg facility, which employs 60,000 workers, Blume's remarks were repeatedly interrupted by boos and jeers from the crowd. The hostile reception came as the German automaker grapples with mounting pressure from Chinese competition and declining electric vehicle sales.
"As management we're not operating in a fantasy world. We are making decisions in a rapidly changing environment," Blume told the assembled workers, prompting loud disapproval from the audience. The CEO faced another wave of boos when he attempted to connect with workers by mentioning his personal ties to the region.
The tense atmosphere reflects growing labor unrest at Volkswagen, where about 100,000 union members began walkouts on Monday. The protests follow the company's September announcement that it was considering dramatic cost reductions due to challenging market conditions.
European automakers like Volkswagen have been struggling with high manufacturing costs while facing intense price competition, particularly from Chinese manufacturers. Blume emphasized the urgency of the situation, noting the "immense price pressure" and the need to boost sales in China, previously one of the company's strongest markets.
"We therefore urgently need to take measures to secure the future of Volkswagen. Our plans for this are on the table," Blume stated during his address, which was attended by German Labor Minister Hubertus Heil.
The confrontational meeting highlights the growing divide between management and workers as Volkswagen attempts to navigate an increasingly competitive global automotive landscape while maintaining its workforce.
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