Volkswagen labour chief says confidence in CEO damaged but can be repaired

Volkswagen labour leader ​Daniela Cavallo said confidence ​in CEO Oliver Blume ‌has been ​damaged in the debate over restructuring but not beyond repair, in a speech to ‌workers gathered at the carmaker's main plant in Wolfsburg on Tuesday.

"The German factories belong to the Volkswagen Group. They are an integral part," Cavallo ‌told over 10,000 workers gathered for an extraordinary assembly to voice ‌their opposition to possible plant closures, with Blume also in attendance. "Our trust in this company's executive board, and especially in its CEO Oliver Blume, has been ⁠damaged. ​Not yet ⁠beyond repair, but damaged nonetheless," she said, according to excerpts of her speech shared by ⁠the works council.

Blume reiterated that Volkswagen was not able to finance ​its future business with current margins of some 3.8%, as the ⁠German auto group battles aggressive Chinese competition, costly overcapacity in Germany and billions in ⁠U.S. ​tariff costs. It was his first appearance before Volkswagen workers since news emerged that he was seeking radical cuts involving ⁠another 50,000 potential job losses and the possible closure of five German plants.

"The executive ⁠board is ⁠fully committed to this course of action and is prepared to take the necessary steps," he ‌said.