In an interview with German TV station ZDF, VW Group CEO Herbert Diess declared that his firm might need to cut jobs due to this coronavirus pandemic, as the carmaker is burning through about 2 billion euros ($2.2 billion) per week.
VW is now not selling any cars out of China, where demand has picked up marginally. However, manufacturing is solely at half of the amount ahead of the crisis, as reported by Autonews Europe.
“We are not making revenues or sales outside of China,” said Diess, including that VW still wants to pay fixed costs of weekly. ”
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“We need to rethink production. We don’t yet have the discipline that we had in China in our German locations,” he further added. “Only if we, such as China, Korea or other Asian states, have the issue under control then we’ve got a chance to undergo the emergency without job losses. It requires a intervention. ”
VW is currently attempting to determine how to resume manufacturing while at precisely the exact same time. The German brand employs 671,000 individuals and contains 124 factories across the world – 72 of that in Europe, with 28 in Germany alone.
In another interview with German newspaper Boersen-Zeitung, VW CFO, Frank Witter said that passenger car sales were down 40% in March, which the firm has yet to exploit any lender credit lines, that can be supposedly value in excess of 20 billion euros ($22 billion).
The Group owns Audi, Porsche, Seat, Skoda, Bentley, Bugatti and Lamborghini, as well as produces Ducati motorcycles in Addition to MAN and Scania trucks.
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