The situation for car-makers seems unpredictable, and VW CEO admits the billions lost every week of inaction. According to Diess, the situation should be brought under control as soon as possible as the sharp fall in demand due to the pandemic will have a serious impact on companies.
Even now, Volkswagen Group is loosing around 2 billion euros every week and if nothing is done, then it will be forced to make redundancies. Volkswagen CEO Herber Diess said:
We need to rethink production. In Germany, we do not yet have the discipline we have at our facilities in China. Only if, as in China, Korea and other Asian countries, we put the problem under control, we will have a chance of overcoming the crisis without job losses. A very serious intervention is necessary.
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Volkswagen Group employs about 671,000 people and maintains 124 factories worldwide. Of these, 72 are in Europe while 28 of them are in Germany. The car industry giant has cut production in Europe because of the coronavirus pandemic.
Meanwhile, Chief Financial Officer, Frank Witter, has openly called on the European Central Bank to speed up short-term debt redemption processes for companies to gain liquidity.