Volkswagen rules out German plant closures

Volkswagen CEO Oliver Blume has sought to reassure the public that the group does not plan to close its factories in Germany, a prospect that had immediately triggered a strong reaction from the country's powerful metalworkers' union, CE Report quotes ANSA.

In an interview with the Sunday edition of Bild, Blume said there are "smarter solutions" to reduce costs than shutting down plants. He noted that last year Volkswagen managed to cut costs at its German factories by about 20%, calling it a "major achievement."

"Our products are very popular—we're just not making enough money from them," he said.

"That's why we must continue cutting costs in every area," Blume explained. "We aim to increase sales volumes for each model, which is why we are systematically streamlining our product portfolio," he added.

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