By Rajwa Quasim
The CEO of German automaker Volkswagen, Oliver Blume, has urged workers at the Emden plant to step up cost-cutting efforts, warning that far more needs to be done to compete with rivals.
Speaking at a workers’ assembly in Emden on Wednesday, the CEO thanked employees for their efforts so far. He said, “This journey is not over. Because we not only measure ourselves against our own past performance. We measure ourselves against the best locations in Europe. Labor costs today are more than double those of comparable European locations. And when it comes to factory costs, other plants are still significantly cheaper. This is not a criticism — it is the reality against which we must measure ourselves.”
READ: Volkswagen eyes 100,000 layoffs; Shuts four German plants (June 27, 2026)
Emden is among several German Volkswagen plants whose future remains uncertain as the company prepares for a restructuring, and the plant lacks a clear path beyond 2030. Blume said factory closures would be a last resort because shutting down plants would be costly. The company is facing severe pressure from competitors such as Chinese automakers, high operating costs in Germany and weaker demand for its vehicles. Volkswagen is also dealing with the impact of U.S. tariffs.
U.S. import tariffs impose an annual burden of about $5.8 billion to $5.9 billion on Volkswagen’s operating profit, severely affecting its North American business model.
READ: Luxury carmaker Porsche to cut 9,000 jobs by 2035 (July 28, 2026)
Reuters reported that the automaker has warned that as many as 50,000 additional jobs could be eliminated as the company seeks to bring its costs closer to those of its rivals. The figure is a theoretical benchmark and not a finalized plan for immediate layoffs. Blume said, “the plan would be the last resort…[].. We will fight for industrial prospects and jobs at our locations, with partners, with investors, and with new industrial solutions.” He further added, “Our plan for the future is the largest transformation program in our company’s history. To make this happen, everyone needs to pull together now.”
Meanwhile, workers have strongly opposed plant closures and large-scale layoffs. According to the news report, Blume’s speech was met with boos from workers.
According to excerpts of company labor leader Daniela Cavallo’s speech, “Our trust in this company’s executive board, and especially in its CEO Oliver Blume has been damaged. Not yet beyond repair, but damaged nonetheless.”