Status: 15.01.2024, 13:25 PM
By: Markus Hofstetter
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VW is facing hard times. That's why the Group wants to save ten billion euros. Managers also have a role to play.
Wolfsburg - The VW Group has had a successful year. In 2023, the various Group brands delivered around 9.24 million vehicles to customers worldwide. This is twelve percent more than in the previous year.
VW cancels salary increase for managers: Ten billion euros to be saved by 2026
But VW can't rest on its laurels. In the current year, the Group anticipates significant losses due to delays in important models and the need for high investments in new technologies. The Wolfsburg-based company is also concerned about the weakening business in China and the lack of profitability.
To address the problems, VW unveiled a cost-cutting program called "Accelerate Forward/ Road to 6.5" for its core brand just before Christmas. By 2026, this is expected to save ten billion euros and increase the return on investment to 6.5 percent.
VW cancels salary increase for managers: Inflation bonus is also collected
Savings are not only to be made in sales and development, but personnel costs are also to be reduced by around a fifth. Apparently, the managers are also supposed to contribute to this. As the Handelsblatt reports, citing company circles, VW is cancelling an upcoming salary increase for the managers. The measure was announced at an internal VW management briefing (MMI) on Friday (12 January).
At VW, it's now also about the managers' money. © IMAGO
Accordingly, managers at the three management levels below the Board of Management as well as executives of the Volkswagen Passenger Cars, Volkswagen Commercial Vehicles and Components divisions are affected. A Group spokeswoman confirmed to Handelsblatt that Volkswagen AG executives will not receive the planned inflation compensation of 1,000 euros and a promised salary increase of 3.3 percent on May 1, 2024.
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VW cancels salary increase for managers: Board of directors should also save
The members of the board of directors should also refrain from spending more money in solidarity. However, this reduction still has to be discussed with the Supervisory Board. "Members of the management have a special responsibility for the company and exercise an essential role model function, which is particularly important in the current situation," the spokeswoman said, explaining the cost-cutting measures.
And that's not the end of the story. In management, positions are to be cut and only filled in individual cases by decision of the Board of Management. Savings are also made further down. VW had already imposed a hiring freeze in the fall and restricted access to the so-called Tariff Plus Group, the highest tariff level at VW AG.