SHANGHAI (Reuters) -German carmaker Volkswagen will need to go through a ‘right-sizing’ process in China, its group CEO said on Wednesday, as competition intensifies in the world’s biggest auto market following a boom in electric vehicle sales in the past several years. “We have enormous capacity in China from the past. It will be a […]
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Volkswagen will go through ‘right-size’ process in China, CEO says
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SHANGHAI (Reuters) -German carmaker Volkswagen will need to go through a ‘right-sizing’ process in China, its group CEO said on Wednesday, as competition intensifies in the world’s biggest auto market following a boom in electric vehicle sales in the past several years. “We have enormous capacity in China from the past. It will be a similar process (in China) to what we went through in Germany to right size,” Oliver Blume told reporters at the Shanghai auto show.
He was referring to an agreement struck with unions late last year to remove around 700,000 units of capacity from the carmaker’s German sites and cut 35,000 jobs to reduce costs.
(Reporting by Victoria Waldersee; Editing by Jamie Freed and Jane Merriman)