published Thursday, August 7th, 2014

VW cost-cutting plan suffers setback

  • photo
    The VW logo is seen on the front of one of dozens of new Passats made at the Chattanooga Volkswagen assembly plant parked outside the plant.

Volkswagen’s $6.68 billion cost-cutting plan has suffered a major setback after labor leaders forced management to axe detailed proposals drawn up by consultants, sources told Reuters today.

The cost-cutting target itself still stands, the sources said.

The move underlines how much relations between management and workers have soured at Europe’s biggest carmaker, which is struggling to raise profits amid stagnating emerging markets and low growth at home.

Last month, VW said it would spend $600 million in Chattanooga to build a new sport utility vehicle to bolster U.S. sales. The company said it would hire 2,000 more workers to the 2,400 it already employs at the factory.

VW also plans to build a new planning and research and development center in Chattanooga.

Previous news report:

about Staff Report...

Get breaking news from the Times Free Press on Twitter at or by visiting us on Facebook or Twitter at the right:

Other National Articles

videos »         

photos »         

e-edition »


Find a Business

400 East 11th St., Chattanooga, TN 37403
General Information (423) 756-6900
Copyright, Permissions, Terms & Conditions, Privacy Policy, Ethics policy - Copyright ©2014, Chattanooga Publishing Company, Inc. All rights reserved.
This document may not be reprinted without the express written permission of Chattanooga Publishing Company, Inc.