VW CEO Oliver Blume: New optimism and future plans at the IAA
Wolfsburg. Mr. Blume, you're presenting stylish cars here at the IAA in Munich, explaining your strategies and software solutions. One gets the impression that what's being presented here in Munich contradicts the mood among the workforce, which is considered quite poor. Many employees are committed to combustion engines; the collective bargaining dispute has left its mark. Why aren't you, or haven't you yet, succeeding in getting the workforce in Wolfsburg on board?
First of all: Great products, new groundbreaking technologies, a powerful corporate presence – all of this is only possible here at the IAA Mobility because we have such strong teams. All over the world. We're demonstrating that the Volkswagen Group is back at the forefront. And the response shows that our new strength is also being recognized by the public. All our colleagues can be proud of that. Over the past three years, we have consistently reoriented ourselves to get the Group back on track. It was challenging for everyone, and we haven't reached our goal yet.
I'm aware that such a restructuring program also generates discontent. Therefore, the Board of Management and senior management have a responsibility to instill pride and self-confidence in the teams – especially with the momentum from Munich. Volkswagen has always been strong in challenging times when we rolled up our sleeves and tackled things together. So, less looking in the rearview mirror and mourning the past, but moving forward as a team with a clear vision.
The Golf is scheduled to be produced in Mexico starting in 2027. Not everyone in Wolfsburg is happy about that.
The Golf is one of our icons. It has given its name to the Golf class and the Golf generation, sold millions of times. The Golf evokes very special emotions. And for us, one thing is clear: We will drive into the future with the Golf. That's why it's only logical to produce the combustion-engined Golf in Mexico in the future. Only by doing this will we create the opportunities at the plant to produce the electric Golf in Wolfsburg in the future. In doing so, we are bringing the future to the main plant – and that's good news for everyone.
How do you intend to ensure that the mood on the Mittelland Canal improves again?
Especially with our new products. That's what we stand for and what we work for. The new models are cool. Everyone on the team can be proud of that, because they're part of this development and this success. Take the names of the ID series. We're also bringing back names like Polo because the workforce is proud of them, too.
What's next for the Osnabrück plant? There will be no more orders there after 2027.
We are committed to finding a sustainable solution for Osnabrück. We have different approaches, but we haven't yet made a decision for Osnabrück.
Can you rule out the possibility of factories in Germany being closed in the coming years?
We have a responsibility for the subsequent use of the plants. We are currently working on this. Production in Dresden will end at the end of 2025, and in Osnabrück in mid-2027, after the end of production of the VW T-Roc Cabriolet. The European market has shrunk by 15 percent in the past four or five years. At the same time, the product range in key segments has tripled. This is leading to enormous competitive pressure. To ensure sustainable success, we have agreed to reduce production capacity at our German sites by more than 730,000 units.
It was agreed that around 35,000 jobs would be cut by 2030. How far have you come so far?
Together we are on the right track. Across Volkswagen AG in Germany, including Volkswagen Saxony, 20,000 employees have agreed to leave the company by 2030, in a socially acceptable manner through partial retirement arrangements or severance payments. Across the entire Group, we have already eliminated more than 10,000 jobs in the first half of the year. We are also making good progress with factory costs, i.e. the expenses incurred directly and indirectly in the production of our cars. At our German locations, we have already reduced these by an average of more than 20 percent. Even though this path is not easy, we are taking it together – and the team is tackling everything well. In the next four or five years, we will achieve savings of more than four billion in personnel and labor costs alone.
Another topic that's recently made headlines is the efforts of the "Zentrum" association to gain a foothold at Volkswagen in Lower Saxony, following its efforts in Zwickau. The association describes itself as close to the AfD. Some say its members are clearly to the right of the AfD. Does this worry you?
I view this with concern. Extreme ideas, regardless of their origin, have no place in our company. As the Volkswagen Group, we stand for freedom, diversity, and solidarity. Progress and our success as an international company are based on these fundamental democratic values. And together we must do everything in our power to ensure that they remain unconditionally intact. In my opinion, this applies to our Group, to every other company, to our entire society. That's why we attach great importance to guiding principles. When the people in the teams are happy and we develop a strong team spirit, then fringe tendencies are significantly less common.
Speaking of right-wing ideology: Your predecessor, Herbert Diess, recently described Tesla CEO Elon Musk as "right-wing radical." It's striking here at the IAA that Tesla hardly plays a role anymore. Is this a triumph for you and the VW Group?
We always look at ourselves first. And we don't think in terms of triumphs or defeats. I value every competitor. Because competition is a good way to gain inspiration. Competition is good for improving yourself. What Elon Musk has achieved in such a short time deserves respect. Our business is so dynamic, everyone has to stay on top of things.
On a different topic: Is it true that you know former Labor Minister Hubertus Heil well?
Of course, I know Hubert's Heil, but we don't have close contact.
The background to the question is who will succeed Human Resources Director Gunnar Kilian.
This is a decision of the Supervisory Board. However, in my role as CEO, I am involved in the process. It is important for us to recruit someone who has a thorough understanding of HR work, can handle the complexity of the company, and, above all, fits well with the team.
When should the succession be decided?
Quality is more important than speed. If it takes an extra month, that's sensible and productive.
Wolfsburg is in a celebratory mood this weekend. What do you wish VfL for its 80th birthday?
VfL Wolfsburg is close to my heart. It's been an important factor in integrating the team, the city of Wolfsburg, and the region for many decades. That's why both our commitment to professional and grassroots sports are important to me personally. I wish the club continued joy and enthusiasm for us all for a long time to come.
And what do you hope for from the home games of the VfL men against Cologne and the VfL women against Jena on the birthday weekend?
I'm keeping my fingers crossed for both teams that they'll bring home three points for themselves and their fans in front of their own fans. To mark the anniversary, we'll be lighting up the power plant's chimneys – our homage to VfL.
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