VW crisis in Germany: 30,000 jobs wobble, shareholders benefit

VW crisis in Germany: 30,000 jobs wobble, shareholders benefit

The German automobile manufacturer VW is in a severe crisis. The bad quarterly figures and the difficult China business have led to 64 percent in profit breakdowns. VW's top management has therefore issued savings of 4 billion euros as the destination. This means that there are up to 30,000 jobs at Volkswagen on the brink and the company's workforce should do without 10 percent of its salary. At the same time, the group plans to pay a whopping 4.5 billion euros in dividends to its shareholders in the second quarter of 2024.

It is particularly explosive that while VW's employees and works are affected by the crisis, shareholders are generously considered. Bonuses for long -time employees and the job guarantees are on the brink, while the dividends remain untouched. The top management, led by CEO Oliver Blume, continues to earn lavish salaries, with flower receiving 9.7 million euros per year alone-200 times the salary of a assembly line.

The decisions of VW management not only have a direct impact on the workforce, but also lead to a domino effect in the auto industry. Suppliers, such as the car supplier Schaeffler in Berndorf, could also delete jobs in the future. The consequences of the crisis at VW could therefore have far -reaching effects, not only for the employees, but also for the entire industry.

This development shows that the economic decisions of a company can have direct and indirect consequences for many people. It remains to be seen how the Situation will develop at VW and how the workforce and the suppliers will react to it.

Source: Kontrast.at