Volkswagen faces a battle with workers over cost cuts at its biggest car division, a central plank of its drive to meet profit margin targets.
VW CEO Martin Winterkorn today called for swift results when outlining an efficiency drive to a gathering of more than 20,000 workers at the automaker's base in Wolfsburg, Germany. "Over the short-term, we urgently need more efficiency and higher profit," he said. "Without an appropriate financial basis, any strategy must and will fail."
Profitability gains at the VW brand are not keeping pace with surging deliveries for the group, which is set to meet a 10 million vehicle sales goal in 2014, four years early.