VW board does not use millions: Austerity course starts immediately!

VW board does not use millions: Austerity course starts immediately!

Wolfsburg, Deutschland - The Volkswagen Group (VW) makes the headlines in the headlines due to falling profits and stricter austerity measures. After a drastic decline in profit from almost 31 percent to 12.4 billion euros last year due to continuing competitive pressure in China and high conversion costs, the board has now decided to expand its salary waiver to eleven percent. This was decided in a meeting of the corporate management after works council chief Daniela Cavallo insisted on the participation of the group's tip in the savings program. While the Board of Directors had waived five percent of its fixed content last year, the current cuts refer to the entire remuneration of the board, including parts of success, such as finanzen.at reported.

The salary reference phase extends over the years 2025 and 2026, followed by gradual return to the previous remuneration amount from 2030, whereby the discounts decreased to 8.5 percent 2028 and 5.5 percent in the following years. These measures are part of a comprehensive renovation program that also provides to reduce 35,000 jobs in Germany by 2030, which corresponds to around every fourth place in the core brand VW. In return, the company has guaranteed to forego possible work closings and operational terminations, as krone.at . Another part of the savings includes cuts in bonus payments and allowances as well as freezing planned wage increases.

In order to master the financial challenges through political uncertainties, trade restrictions and geopolitical tensions, VW plans to increase sales of up to 5 percent in the current year. In addition, an operational return on sales between 5.5 and 6.5 percent and a net cash flow in the automotive store of two to five billion euros is expected, which includes investments in future projects and renovation measures. These comprehensive austerity measures reflect the need to strategically realize in an increasingly difficult economic environment and to secure competitiveness.