Portugal Colonial - Volkswagen confirms weighing up to 50,000 more job cuts

"The next step is to bring our overheads down to a competitive level," chief executive Oliver Blume said.

"As half of our overheads stem from staff costs, a theoretical calculation -- assuming no change in labour costs –- would result in the loss of around 50,000 jobs."

This comes on top of 50,000 jobs that the 10-brand automaker is already in the process of cutting in Germany under a 2024 deal with unions.

The powerful IG Metall union organised protests at Volkswagen sites last week after reports emerged of VW's plans to ramp up its job cuts, as well as potentially close four German factories.

In the memo, Blume said he wanted to stress that "intelligent solutions" were better than closing plants but added the future of the four sites could not be guaranteed.

"The truth is also that, as things stand today, we cannot confirm that the Emden, Hanover, Zwickau and Neckarsulm plants will be able to operate competitively into the 2030s," he said.

Europe's largest carmaker has come under intense pressure from US tariffs, slimmer profit margins from electric cars and above all intense competition in China, the world's largest auto market.

Management at the group, which apart from its namesake also includes SEAT, Audi and Porsche cars, last Thursday sought to thrash out its cost-cutting plans with VW's supervisory board.

Any restructuring is likely to be hard fought.

Labour representatives and the German state of Lower Saxony, both of whom take a dim view of plant closures, together hold more than half the seats on the supervisory board.

Unions had strongly criticised Volkswagen and Blume for unsettling employees by allowing media reports of mass job cuts to circulate without comment, demanding that the CEO take a public stand.

L.E.Campos--PC