VW managers to take combined 300-million-euro pay cut, reports local newspaper

BERLIN (Reuters) – Volkswagen (ETR:)’s management will take pay cuts adding up to over 300 million euros ($310.08 million) by 2030, according to comments by VW human resources board member Gunnar Kilian to local paper Braunschweiger Zeitung published on Wednesday.

Volkswagen’s board would take a larger cut proportional to their salary than the rest of management or the workforce, Killian told the paper, declining to provide further details.

Volkswagen and unions struck a landmark agreement in December to cut costs at the carmaker, pledging to reduce staffing by 35,000 by 2030 and cut capacity at its German plants by 734,000 units.

VW said the deal would allow savings of 15 billion euros annually in the medium term, including 1.5 billion in labour costs.

Unions had said during negotiations that leadership figures should also do their bit and take pay cuts, placing blame for the carmaker’s malaise on poor strategic decisions by management.

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