Volkswagen Group Losing Around R40 Billion A Week Because Of Coronavirus

German TV channel ZDF recently interviewed CEO of the Volkswagen Group, Herbert Diess where he shared that the company may have to cut jobs as a result of the Coronavirus pandemic.

Diess confirmed that are not making sales or revenues outside of China and need to cover fixed costs of “around 2 billion euros a week”.

“We need to rethink production. We do not yet have the discipline that we had in China at our German locations,” he added. “Only if we, like China, Korea or other Asian states, get the problem under control then we have a chance to come through the crisis without job losses. It requires a very sharp intervention.”

The company employs 671,000 people and has 124 factories around the world.