Volkswagen’s CFO, Arno Antlitz, has warned that the company may need to reduce its workforce if its factories do not become more efficient. Speaking at a Goldman Sachs conference in London, Antlitz stated that the German plants are currently not competitive and that improving efficiency is crucial to maintaining current employment levels.
The company’s earnings have declined by 33% in the first nine months of the financial year, resulting in a proposed dividend of 6.75 euros, down from 9 euros last year. However, Antlitz reaffirmed the company’s commitment to paying at least 30% of its after-tax earnings as dividends.
Labour representatives have been calling on VW executives and shareholders to contribute to cost reductions by accepting a reduced dividend. While no further details were provided, Antlitz expressed his willingness to contribute to cost reduction efforts as part of the Executive Board.
The Volkswagen Group’s factories are facing a shrinking market, leading to discussions about plant closures in Germany. To address this, Antlitz emphasized the need to fully utilize plant capacity.
Source: https://www.marketscreener.com/quote/stock/VOLKSWAGEN-AG-436737/news/Volkwagen-s-German-plants-must-get-more-efficient-CFO-says-48532380