Oliver Blume, CEO of Volkswagen, pocketed in 2024 a compensation equivalent to the annual salary of 4,268 workers earning the minimum wage. Meanwhile, the company plans to lay off up to 100,000 employees and close four plants, including the one in Neckarsulm. Profits fell by 44%, but shareholders received high dividends. Workers pay for the crisis; executives do not.
The technological paradox of reducing capacity while pursuing electrification 🤖
Volkswagen needs to invest in electric platforms and software to compete with Tesla and Chinese manufacturers. However, closing plants like Neckarsulm reduces production capacity just when it is necessary to scale models like the ID.4. Blume's strategy cuts labor costs to finance the transition, but sacrifices jobs and know-how. The dilemma is clear: without trained workers, electrification slows down. A decision that prioritizes quarterly balance sheets over long-term technical development.
Creative solution: let Blume earn like 4,268 employees and work like one 💡
We can save Volkswagen from layoffs. If Blume lives on the minimum wage of his 4,268 employees, the company saves his salary and he demonstrates that austerity works. Additionally, let him occupy one of the positions he plans to eliminate. That way, he will know firsthand whether the electric transition hurts more on the payroll or on the bottom line. Everything stays in-house.