The Board of Directors of "Volkswagen" company has approved a large-scale plan that envisages a significant reduction in costs.
Modern.az reports with reference to foreign media that the plan envisages the reduction of 50 thousand jobs, the reduction of the number of car models by half, and the cessation of car production in four factories. The plan was prepared by the concern's CEO Oliver Blum. The reasons for this are the competition from Chinese manufacturers with lower costs and the negative impact of customs tariffs imposed by the USA on the company.
Blum was able to overcome the resistance of both trade unions and the government of the federal state of Lower Saxony, which owns a share in the company, regarding the implementation of the plan.
"Volkswagen" has informed investors that the restructuring will be "the largest transformation program" in the company's history. Currently, approximately 650,000 people work at "Volkswagen".
The company announced that its net profit after taxes decreased by 30 percent in the first half of the year. The main reason for this was the decrease in sales in China.
