According to an internal memo sent to employees, Volkswagen’s management warns that the auto industry’s leaders may need to reduce an additional 50 000 work to compete with rivals.

CEO Oliver Blume stated in a letter released by Reuters that further cuts are necessary because Volkswagen is operating at a 20 % cost risk in comparison to its rivals and the carmaker recently announced plans to cut 50, 000 work across the business, including at its subsidiaries Porsche and Audi.

That circumstance, according to the memo, would result in a” conceptual deduction” of another 50, 000 work across Volkswagen’s global footprint, properly refuting earlier claims that Ford was weighing up to 100, 000 work cuts.

According to Reuters, Blume stated in the memo that” we are presently evaluating across all brands, companies, and locations how many changes are actually necessary and feasible.”

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Ford, the largest manufacturer in Europe, has experienced lower profits as a result of higher price prices, fierce competition in China, and increased costs for European factories that are under pressure to improve.

Blume recently suggested that neglected factories could be used for the security industry or to create Chinese Ford models in Europe. In the memo, he stated that he favors “intelligent solutions” over the closure of facilities.

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He stated in the letter that Emden, Hanover, Zwickau, and Neckarsulm’s aggressive use cases are still unable to be confirmed for the company’s tenets in the 2030s.

Employees have enraged the company’s management to clarify its reform plans, which Blume presented to the agency’s leaders on Thursday.

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According to sources with knowledge of the situation, work representatives on the committee reportedly blocked proposals that included work cuts and the potential shutdown of four factories.

Volkswagen’s statement following the meeting with stakeholders did not address work cuts or plant closures, but rather that it had plans to gradually decrease production and reduce its lineup.

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In his message to employees, Blume stated that it is natural that some problems still need to be discussed and evaluated because not everything has been planned out down to the last detail. There will undoubtedly be more discussions where we will work hard to find the best alternatives.

This report was written by Reuters.