Rumors of Volkswagen: 20% staff to be laid off in China

The year of 2015 would never be ordinary for Volkswagen Group. This German carmaker is now stuck in a very difficult dilemma. Martin Winterkorn, former CEO at Volkswagen Group, has resigned his position as CEO, but still couldn’t save this carmaker from the so-called “TDI gate” and this 68 year-old may be forced to leave VW for good.

The VW’s management change is far from over. Matthias Müller, former CEO at Porsche, has succeeded Winterkorn’s position as the new CEO while the Group’s designated North America chief Winfried Vahland, present CEO at SKODA, announced in this October that he refused to be transferred to VW North America and would leave VW.

The falling of this Germany Giant in China seems not as rapid as it was in Europe and America. As a leading carmaker in China’s auto market, the sales of Shanghai Volkswagen and FAW-Volkswagen still totaled 1,309,760 units and 1,182,141 respectively for the first 3 quarters of 2015.

But according to an insider, VW China is likely to lay off 20% staff in China, so as to cut personnel costs. Reports from Time-Weekly has sought confirmation upon this issue from VW China but was told “there was no such thing” by someone from PR department.

Analyst said VW Group is definitely to go through more management changes, but VW China’s response to the structure changes in the headquarter could go both ways, considered China’s unique and complicated situation.