Volkswagen managers and staff representatives will begin crunch talks in Hanover on Wednesday, following the German group’s announcement that drastic cost-cutting measures are wanted to maintain the carmaker aggressive.
Two homegrown figures who’ve spent their total careers at Volkswagen — group CEO Oliver Blume and head of the works council Daniela Cavallo — will face off on the assembly.
Blume desires to seal a “package deal” of measures this 12 months to shore up the carmaker, which has struggled with weak demand and a troublesome transition to electrical autos.
Cavallo has promised “bitter resistance” to the plans that embrace the potential closure of manufacturing websites in Germany — an unprecedented step within the 87-year historical past of Volkswagen.
– The boss  –
A mechanical engineer by coaching, Blume plotted his profession via the totally different manufacturers — Audi, Seat after which VW — earlier than changing into CEO of Porsche in 2015.
The mild-mannered supervisor, 56, was tapped by the household dynasty behind Volkswagen to turn out to be head of the group in 2022, changing controversial determine Herbert Diess.
A consensus-builder by fame, Blume was seen as a breath of recent air after Diess had rubbed shareholders and unions the improper approach with provocative statements.
So it was all of the extra stunning when Volkswagen introduced this month that it may lower hundreds of jobs by closing factories in Germany.
The shock proposal alarmed unions and the federal government however Blume has stated drastic motion was essential to tackle the “main challenges” confronted by the carmaker.
In his quick time as CEO, Blume has already sought to treatment Volkswagen’s ills, scrapping Diess’s coverage of doing every thing in-house and hanging new partnerships.
The German large has made investments in Chinese language producer XPeng and US outfit Rivian to work on in-car know-how, though the brand new tasks will take time to repay.
– The union chief –
Like Blume, Cavallo was born near Volkswagen’s headquarters within the central German metropolis of Wolfsburg and has by no means strayed removed from the group.
Her father emigrated to Wolfsburg from Italy to take up a job at Volkswagen together with hundreds of different so-called visitor staff.
Cavallo, the primary lady to guide Volkswagen’s works council, started an apprenticeship on the carmaker out of highschool.
In 2002, she was elected to characterize staff on the VW subsidiary Auto 5000, working her approach as much as the pinnacle of the overall works council in 2021.
“My job is to not perceive know-how right down to the final element, however to advocate for folks’s pursuits,” Cavallo advised Die Zeit newspaper after being criticised for not having spent enough time on the manufacturing unit line.
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Cavallo is “very clear on what she desires for workers”, stated automotive market professional Stefan Bratzel, who warned that administration shouldn’t “underestimate” the 49-year-old.
She reportedly will get together with Blume higher than she did with Diess.
There was a slim probability that the 2 Volkswagen lifers may determine one thing out “in partnership”, stated Bratzel.
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