Volkswagen CEO Oliver Blume said in a recent interview that German automakers could learn a lot from China to structure themselves. The statement comes amid Volkswagen’s restructuring plan that will lay off 50,000 employees by 2030.
China has grown rapidly in the past decade through its aggressive expansion strategies, technological innovation, and business policies, making it possible for local manufacturers to cater to both established and emerging industries worldwide.
In an interview with Bild am Sonntag, as reported by Reuters, Blume pointed out what he was most impressed by with China. He said:
“The Chinese proceed in a very planned way … and have clear priorities – it is structured in an optimal way.
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“What we experience very positively in China is a high level of discipline and willingness to execute.
“It is worth looking beyond our own backyard … we can learn a great deal from how the country has developed.”
Volkswagen Group’s Porsche Backtracks on EV Plans
Through a major restructuring, Volkswagen might be looking at the right source for inspiration, considering how consistent China has been with its electric vehicle policies. Chinese EV manufacturers have been determined to continue growing on the same path and have even tapped into global markets with inadequate EV infrastructure.
However, the same cannot be said of Volkswagen Group’s Porsche. The German brand has made a U-turn on its EV policy, meaning it will now focus on strategies to produce more cars that run on internal combustion engines and hybrid technology. However, this decision will cost the company $4.5 billion.
MotorBiscuit reported that, due to weak demand, Porsche abandoned its all-electric platform for hybrid cars, meaning the company had to recalibrate several processes last year. The declining market share in China and U.S. import tariffs have increased costs.
Porsche CEO Michael Leiters recently revealed that the company will have to cut jobs to reduce expenses. He said:
“Since I took office, our management team has systematically analysed the situation and begun a series of initial targeted measures. These include the consistent application of our Value over Volume principle, especially in the difficult market environment of China; and the quality-oriented ramp-up of production of the all-electric Cayenne.
“We will streamline our management structure, reduce hierarchies and cut back on bureaucracy. We have also already begun to focus more strongly on our core business.”
He added:
“We are using the current challenges as an opportunity to act even more decisively. We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable.”
