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Labor Chief Calls VW Productivity Target “Unrealistic”
Volkswagen Group’s hope of hiking the productivity of its namesake brand 10% is “unrealistic,” declares Bernd Osterloh, the supervisory board member who heads the company’s works council.
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Volkswagen Group’s hope of hiking the productivity of its namesake brand 10% is “unrealistic,” declares Bernd Osterloh, the supervisory board member who heads the company’s works council.
Labor blames much of the company’s inefficiencies on management. VW’s critics claim the unit employs twice as many workers as Toyota Motor Corp. uses to build about the same number of vehicles.
The 10% target is part of a 12-point plan proposed by brand CEO Herbert Diess, who joined VW from BMW AG last year. His goal is to streamline VW operations and improve the marque’s profitability, in part by slashing annual costs €5 billion ($5.4 billion) by 2017. The strategy also calls for a sweeping cultural change in the company, which has been known for its autocratic business methods.
Osterloh doesn’t reject Diess’ ideas outright. But he wants productivity gains linked to job guarantees.
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