<body><div><p><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=41yR5m_0wP7CqFk00" alt="https://img.particlenews.com/image.php?url=41yR5m_0wP7CqFk00" width="1280" height="720" ></p><p> Europe’s biggest automaker, Volkswagen, continues weighing various cost–saving measures as it struggles to determine its next move. Potential cost–reducing measures the German automaker is considering are a two–year wage freeze and a 10 percent wage cut. </p><p> Like the rest of Europe, the once mighty German automaker currently finds itself under intense pressure to cut production expenses amidst turbulent conditions in the automotive market. Unsurprisingly, VW’s workers are unhappy with the prospect of wage cuts and have been critical of the company’s management for not yet having a plan in place despite promises of such. </p><nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate><h2> What Volkswagen Is Considering </h2><p> According to <a href="https://www.reuters.com/business/autos-transportation/volkswagen-weighs-wage-cuts-bonus-reductions-push-save-4-billion-euros-2024-10-27/" rel="nofollow noopener" target="_blank"> Reuters </a> , the German newspaper Handelsblatt has reported that Volkswagen is seeking to save at least 4 billion euros. The German newspaper cited VW insiders familiar with the situation who stated the 10 percent wage reduction and the two–year wage freeze as solutions the company is currently considering. </p><p> Additionally, Handelsblatt claimed that top executives at Volkswagen are considering capping bonuses for top employees, could close some of its German production facilities, and are considering cutting bonus payments for employee anniversaries. </p><h2> What Volkswagen Has Already Done </h2><p> In September, the German automaker announced it would end the job guarantees it has had in place since 1994. This 30–year–old job guarantee was initially set to protect employment at six of Volkswagen’s domestic production facilities until 2029. </p><nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate><p> The move, which shocked many throughout the automotive industry, was part of the company’s plan to reduce its overall costs by $11 billion. This was also the first time Volkswagen announced it was considering shutting down domestic production facilities in its 87–year history. </p><p> The automaker is also engaging in wage increase negotiations with the union. If Volkswagen and its workers are unable to settle on a new wage agreement by June 2025, the labor deal that was in place before the current one will come into effect. Ironically, this previous agreement would grant workers at the production facilities, which VW is considering closing or <a href="https://geek.nexus/volkswagen-prepares-for-layoffs-after-ending-job-guarantees/" rel="noopener nofollow" target="_blank"> laying off </a> , substantial wage increases. </p><h2> Volkswagen’s Dire Situation </h2><p> Volkswagen CEO <a href="https://geek.nexus/germany-is-looking-for-ways-to-support-vw-amid-a-floundering-automotive-market/" rel="noopener nofollow" target="_blank"> Oliver Blume </a> has stated that his company is severely lacking “competitiveness” and that the European automotive industry is in “a very demanding and serious situation.” That’s an accurate assessment. </p><nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate><p> Electric vehicle (EV) sales declined by nearly 70 percent in Germany during August. Additionally, the automaker’s year–over–year sales have plummeted by almost 15 percent compared to 2023. Overall, automotive sales in Europe are trending below pre–pandemic levels, which is a trend Volkswagen believes will continue for quite some time. </p><p> The German government has already agreed to give its automakers up to 40 percent tax reductions on EV sales. However, this move will not work if German consumers are not buying electric cars. </p></div></body>

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Europe’s biggest automaker, Volkswagen, continues weighing various cost–saving measures as it struggles to determine its next move. Potential cost–reducing measures the German automaker is considering are a two–year wage freeze and a 10 percent wage cut. Like the rest of Europe, the once mighty German automaker currently finds itself under intense pressure to cut production...