The confidence in the CEO of German automotive giant Volkswagen, Oliver Blume, has been "damaged" in the debate over restructuring, labor leader Daniela Cavallo said in a speech to workers gathered at the carmaker's main plant in Wolfsburg on Tuesday.
"The German factories belong to the Volkswagen Group. They are an integral part," Cavallo told over 10,000 workers gathered for an extraordinary assembly to voice their opposition to possible plant closures, with Blume also in attendance.
"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," she said, according to excerpts of her speech shared by the works council.
Blume reiterated that Volkswagen was not able to finance its future business with current margins of some 3.8%, as the German auto group battles aggressive Chinese competition, costly overcapacity in Germany and billions in U.S. tariff costs.
It was his first appearance before Volkswagen workers since news emerged that he was seeking radical cuts involving another 50,000 potential job losses and the possible closure of five German plants.
