Warning of tough times ahead, CEO of
Volkswagen Passenger Cars, Thomas Schäfer, addressed top VW employees this week, telling them, “This is the final wake-up call.” Schäfer is calling for a short-term spending freeze to get costs under control.
“We are letting the costs run too high in many years,” VW’s leader proclaimed during an online management meeting this week.
Schäfer said he plans to cut spending for the rest of the year as part of a broader company-wide savings plan. Last month, VW announced a
new “Accelerate Forward” program designed to drive long-term profitability and performance.
Part of the plans includes doubling VW passenger brand profit margins from around 3% currently to 6.5%.