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The loss of competitiveness in the automotive market was the reason given by the CEO of the automaker Volkswagen for the announced cuts and layoffs
Volkswagen CEO Thomas Schäfer made impactful statements during a meeting in Wolfsburg when informing that the automaker Volkswagen lost its competitiveness due to structures, tax processes and costs. This revelation raises questions about the future of the German automotive giant, which is already planning substantial cuts and layoffs for the year 2024, as reported by the website Estadão.
Schäfer points to the need for a thorough review of the company's internal structures, processes and cost reduction and layoffs to restore the competitiveness lost over the years and hopes to remain firm in the market, despite the challenges.
Planned cuts and announcement of layoffs by the automaker
In response to the challenges, automaker Volkswagen outlined plans for spending cuts and layoffs until 2024. The plan aims to reduce costs by up to 10 million euros, as reinforced by Gunnar Kilian, member of the human resources council. This decrease, which is part of this value, will be recovered through partial and early agreements and reforms. Anticipated layoffs are an imminent reality as the German automaker seeks to quickly adapt to changes in the automotive market.
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In addition to cuts and cost reduction, the automaker Volkswagen has already outlined a strategy to Migrate from combustion vehicles to electric models. This strategic move implies high investments in electrification of the fleet. The iconic Golf GTI, loved by enthusiasts around the world, is being replaced by the ID GTI Concept, which represents Volkswagen's electric and futuristic vision. This change, although vital for the automaker's sustainable future, requires substantial investments in electrical technologies and infrastructure.
The impact of the name of the automaker Volkswagen
Despite the announcement of cuts and layoffs, Volkswagen has a rich history, being responsible for some of the most iconic cars and popular vehicles over the years. Models like the Beetle, Golf and Passat have become an integral part of automotive culture.
Furthermore, the automaker has a wide range of models, from compact and fuel-efficient cars to premium vehicles and SUVs. This diversity contributes to its relevance in different segments market and is always looking for technological innovations in the automotive industry. Whether in terms of fuel efficiency, safety or connectivity, VW constantly seeks to incorporate cutting-edge technologies into its vehicles.
