VW Has ‘One, Maybe Two Years’ to Turn Things Around, Says Finance Chief

• Volkswagen Group executives met with workers on Wednesday.
• CFO Dr. Arno Antlitz warned that time was running out to change direction amid a drop in demand.
• VW Group sales in Europe are up slightly, but EV sales are down significantly.

Dr. Arno Antlitz, chief financial and operating officer for Volkswagen Group, told workers gathered at the company’s Wolfsburg headquarters the company has “one, maybe two” years to turn things around for its main car brand, Volkswagen. His words come just days after news that VW could close two plants in Germany, something that hasn’t happened in the company’s entire 87-year history.

Approximately 25,000 workers were on hand for a meeting with company executives on Wednesday, per a report from Reuters, and they were rather vocal about the possibility of plant closures in the country. In the 1990s, an agreement was established that guaranteed job security of VW Group employees through 2029. But VW’s leadership argues that changing markets in Europe will require significant cost cuts as demand drops. Antlitz mentioned a shortfall of around 500,000 vehicles and told the assembly that sales likely wouldn’t recover in the post-pandemic era.

In response, the Volkswagen works council blasted company executives for failing to do their jobs. According to Euronews, Chairperson Daniela Cavallo didn’t mince words during the meeting, accusing the board of not focusing on the core business and making employees pay for their mistakes.

Glancing at recent VW Group sales stats, things don’t appear as dire as Antlitz suggests. Second-quarter results show the European market is up slightly at 1.9 percent, while sales are also up in South America and the US. It’s a different story in Asia, though, where competition from China has VW Group sales down 8.2 percent. Looking specifically at electric vehicles, the company is suffering all across Europe with sales down 15.2 percent. With VW Group pushing hard towards an electric lineup in its plethora of brands, these numbers point to a difficult future.

Volkwagen’s longterm future in the US remains uncertain. Motor1 has reached out to VW North America for a statement, and will update this article if new information becomes available. In the meantime, VW’s reboot of the Scout brand is still on track with its new electric truck and SUV scheduled to debut on October 24.