BERLIN: Volkswagen's CFO said yesterday the company's labour force would need to shrink if its factories did not become more efficient and that the group's dividends would fall in line with earnings.
"Today, our German plants are not competitive. Without improving their efficiency and performance, we cannot maintain current employment levels," Arno Antlitz said at a Goldman Sachs conference in London, according to excerpts of his speech seen by Reuters.
"We need to fully utilise plant capacity ... In a shrinking market, this inevitably leads to discussions about closing some plants in Germany," he said.
Labour representatives have repeatedly called on VW executives and shareholders, including the Porsche and Piech families, which own a third of the VW Group, to contribute to the reduction in costs by accepting a reduced dividend.
Speaking in London, Antlitz said the proposed dividend would fall accordingly with earnings.
VW's earnings are down by a third in the first nine months of its financial year, which would translate to a dividend of 6.75 euros versus 9 euros last year, based on to LSEG estimates.
Antlitz said the carmaker was committed to a payout ratio -which represents how much of a company's earnings after tax is paid to shareholders - of at least 30 per cent.
"It goes without saying that, as a member of the Executive Board, I am fully committed to contribute my part to reduce costs," Antlitz added, without providing further details.