Volkswagen is staring down another brutal restructuring, and Oliver Blume isn't exactly sugarcoating the situation. In an internal memo seen by Reuters, the VW Group CEO warned employees that “the situation is more than critical” as the company prepares for yet another round of painful cost-cutting measures.
The problem isn't simply that the German automotive empire needs to sell more cars. Its cost structure is putting it at a serious disadvantage against rivals at a time when competition is becoming absolutely fierce, especially with the global rise of Chinese brands. According to the ex-Porsche CEO, overhead costs remain more than 30 percent higher than those of comparable companies.
