Volkswagen chief financial officer Arno Antlitz has said that the company would need to cut its workforce if its German plants did not become more efficient, Reuters reports.
“Today, our German plants are not competitive. Without improving their efficiency and performance, we cannot maintain current employment levels. We need to fully utilise plant capacity… in a shrinking market, this inevitably leads to discussions about closing some plants in Germany,” he said at a Goldman Sachs conference in London, according to excerpts of his speech seen by the news agency.
Labour representatives have repeatedly called on Volkswagen executives and shareholders, including the Porsche and Piech families, which own a third of the Volkswagen Group, to contribute to cost savings by accepting a reduced dividend.
Antlitz said in London that the proposed dividend would fall accordingly with earnings. Volkswagen’s earnings were down a third in the first nine months of its financial year, which would translate to a dividend of 6.75 euros (RM31.57) versus nine euros (RM42.10) last year, based on LSEG estimates.
Antlitz said the carmaker was committed to a payout ratio of at least 30% of earnings after tax. “It goes without saying that, as a member of the Executive Board, I am fully committed to contribute my part to reduce costs,” he added, without providing further details.
It was reported in September that Volkswagen was considering closing its factories in Germany in a bid to cut costs and streamline its spending in the face of rising Chinese competition.
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