Volkswagen AG execs will have to go back to the drawing board to determine where to cut costs after its works council demanded outside consultants be shown the door.
Reuters reports last month, CEO Martin Winterkorn informed his employees that he was seeking €5 billion ($6.7 billion USD) in efficiency gains by 2017 so as to close the profit gap between his company and its rival automakers. In turn, VW brought aboard consultant group McKinsey to help determine where to find the needed gains. But the pricey consultants were a point of contention with VW's labor representatives.
The concerns over McKinsey's presence focused upon fears of potential layoffs at factories in Kassal and Wolfsburg, Germany, where a total of over 65,000 assemble components, transmissions and vehicles. Labor leaders suggested the company focus on cutting both R&D spending and its trimming its bloated model lineup rather than reduce headcount.
The post VW Works Council Forces Out Consultants Amid Headcount Reduction Fears appeared first on The Truth About Cars.
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