Mass continues the "self-remodeling" strategy: to defuse the battle to cut spending

Posted on 10/25/2016 10:25:35 AM

The Porsche family and the Piech family, 52 percent of the Porsche and the Piechs, who are controlling the capital side of the Volkswagen Group, are ruling out past disputes and "vowing" to support their current management and work together, the report said. To overcome the diesel emissions scandal.
Not only that, the source also said: Volkswagen Group, the public brand by 2021 to reduce the cost target is 3.7 billion euros, the "reduction plan" will be included in 2014 proposed "5 billion euros cuts plan" within.
"Brothers together" to support management
Hans Michel Piech and Wolfgang Porsche, in a recent German magazine interview, pledged to support Hans Dieter Poetsch, chairman of the board of supervisors of the Volkswagen Group, and chief executive Matthias Mueller, and will ensure their right to control the day-to-day operations of the Group.
Some commented that when Ferdinand Piech Ferdinand Piech (Ferdinand Piech) in the Volkswagen Group Chairman of the Board of Supervisors, the two families continue to clash, Ferdinand Piech resigned last year, and his brother Hans Michel Hans Michel cleared the way to the board of supervisors.
Some investors are worried that the battle between the two families may affect the "trend" of the Volkswagen Group, but for now, both companies are based on the interests of the company, is committed to reducing costs and adapt to new industry trends, such as electric vehicles And autopilot.
"We are different, it is from different family representatives." Hans Michel Piech said, but he stressed, and Wolfgang Porsche have the ability to find a consensus.
Although the right to participate in the voting (for the Volks group) family members increased to 34 people, but Wolfgang Porsche said: not everyone will become a member of the board of supervisors, or have a say in the discussion, not all of the This is of interest. "It is important to look for and develop suitable family members in the successor, rather than simply waiting to receive a dividend."
Cutting spending is still under negotiation
Volkswagen Group since September last year, suffered the most serious crisis in history, because the cheating in the control software, resulting in diesel emissions targets fraud, has now spread to millions of cars around the world. The group has set aside 17.8 billion euros for this, may be used to pay for scandal-related costs.
According to sources, by 2021, Volkswagen Group's core public brand in its goal is to cut the cost of 3.7 billion euros. In the light of this plan, the leaders of the trade unions are being consulted.
In response to this rumor, the Volkswagen Group is currently refusing to comment, trade unions have not given comments and answers. A source close to the mass trade union said: "The breakdown of the future bargaining agreement still exists because we lack the necessary commitment from the company.
As early as 2014, when the Volkswagen Group CEO Martin Wendell to raise the brand's profitability, will implement the reduction measures, including lower procurement costs, reduce complexity and factory expenses. Currently the project has completed the 2.5 billion euros reduction target, the return on sales has increased from the original 2% to 6%.
In accordance with the plan to cut € 3.7 billion by 2021, of which 3 billion euros in spending cuts will affect the operation of the public in Germany, and the public management and trade union leaders on future investment negotiations are still in progress. But now, because of the external pressure on diesel emissions scandals, both sides agreed to start from the long-term interests, practice "remodeling self" show, in order to maintain competitiveness.

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