Transportation

VW Workers Want Clarity on Profit Goals Ahead of Savings Push

  • Works council boss says simple 6.5% target is too vague
  • VW execs, workers to start savings negotiations in next weeks

The cost-cutting plans have raised concerns about job security, especially as the transition to EVs alters traditional production processes. 

Photographer: Sean Gallup/Getty Images
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Volkswagen AG’s powerful works council called on management to be more forthcoming about plans to boost profits as they head into negotiations over cost-cutting measures in the coming weeks.

Council head Daniela Cavallo said the workforce is ready help achieve Chief Executive Officer Oliver Blume’s mid-term target of 6.5% margins for the carmaker’s namesake brand, but said management hasn’t provided enough detail about how to reach it.