Volkswagen not in talks with Chinese manufacturers, CEO says
Volkswagen Addresses Overcapacity and Future Strategies
By Rachel More
Current Status of Discussions with Chinese Manufacturers
BERLIN, May 20 (Reuters) - Volkswagen is not currently in discussions with Chinese manufacturers as it looks for ways to deal with overcapacity in its European production network, CEO Oliver Blume said on Wednesday.
Excess Capacity in European Plants
"We still have excess capacity at our plants in Europe and Germany. We need to address this in order to remain competitive," Blume told a workers' assembly in Wolfsburg, adding that the carmaker would not return to pre-pandemic sales in the region.
Commitment to Avoid Factory Closures
Volkswagen has vowed to avoid factory closures in agreement with unions and the company's powerful works council.
Speculation on Partnerships and Plant-Sharing Deals
Media Speculation and CEO Clarification
Late last month, Blume said contracts with defence companies or Chinese plant-sharing deals could offer solutions, sparking media speculation over possible partnerships like recent deals struck between Stellantis and Chinese carmakers.
"There are currently no plans or discussions with Chinese manufacturers," Blume said.
Alternative Solutions and Cost Reductions
Sale of Osnabrueck Plant
Volkswagen is advancing with talks to sell its plant in Osnabrueck, northern Germany, to a defence partner.
Cost Reductions in German Plants
At its plants in Wolfsburg, Emden and Zwickau, the company says it already reduced costs by over 20% on average last year.
Works Council Response and Future Outlook
Calls to End Speculation
Works council head Daniela Cavallo called for an end to speculation over the future of the German sites.
Focus on Volkswagen's Products
"Given the image our company has projected recently, we're certainly not winning any awards. On the contrary: one gets the impression that Volkswagen is almost a takeover target and needs to be rescued," Cavallo said in a message to staff following the assembly.
She called on management to focus on success with Volkswagen's products rather than "the umpteenth debate about alleged plant closures or supposed talks with third parties regarding alternative uses for our plants".
(Reporting by Rachel More;Editing by Madeline Chambers and Emelia Sithole-Matarise)
