Skip to main content

CAM Expert: Cost Cuts Alone Won't Save Volkswagen

Image
CAM Expert: Cost Cuts Alone Won't Save Volkswagen

Osnabrück – September 08, 2026 -- Volkswagen's cost-cutting program will not be enough to pull the automaker out of its crisis, according to Stefan Bratzel, director of the Center of Automotive Management (CAM) in Bergisch Gladbach. "Savings alone will not save Volkswagen," Bratzel told the Neue Osnabrücker Zeitung (NOZ).

Bratzel says two plant closures would suffice, not four

While VW must cut costs "drastically and quickly" due to mounting overcapacity at its domestic plants, Bratzel called the planned closure of four German sites excessive. "Two locations should be enough," he said, adding that job cuts combined with longer working hours without pay compensation could help lower production costs.

CAM director urges heavier investment in autonomous driving and robotics

Bratzel pressed VW to channel more capital into new growth areas such as autonomous driving and robotics, arguing the group has the engineering talent to compete there. "Volkswagen has excellent technicians and engineers, there is a lot of potential," he said. He warned that without a "huge mindset change" and greater risk tolerance, the company will struggle to regain competitiveness, acknowledging that "not everything will work."

Management faces conflicting priorities between cuts and expansion

Bratzel described VW's leadership as caught in a bind, balancing cost cuts and plant closures against the need to pursue new growth fields simultaneously. He said this dual mandate is proving difficult to execute in practice.

Power struggle set to intensify at Friday's Wolfsburg supervisory board meeting

The CAM director expects the conflict between management, the IG Metall union and political stakeholders to escalate further at the supervisory board meeting scheduled for Friday in Wolfsburg. "A final decision should not be expected. The parties agree that savings are necessary, but the lines of conflict are simply too wide," Bratzel said.

Published by
fairsonline_team
News Type