VW May Freeze Promotions, Cost Cut Next Golf Amid Scandal

by Mark Stevenson

Published: October 25th, 2015

vw may freeze promotions cost cut next golf amid scandal

German business magazine Manager Magazin reported Saturday (via Reuters) that managerial promotions may be frozen beginning next year as the company looks to save money wherever it can amid the diesel scandal.

The company may also re-use as many parts possible when developing the eighth-generation Volkswagen Golf in order to cut costs.

After already setting aside 6.5 billion euros to cover costs associated with the largest scandal to hit the German automaker in over 50 years, it is still looking at an estimated final bill of 30 billion euros to cover the costs of fixing nearly 11 million affected cars, lawsuits and other associated charges.

Works council chief Bernd Osterloh doesn’t believe the freeze on promotions will be put in place, though expects other measures to be taken further up the ladder.

“We expect to see other symbols first: for instance, clear statements on management’s stance on bonus payments. The motto needs to be to lead by example,” Osterloh said in a statement to Reuters.

If the rumored measures are put in place, they will follow a massive cost-cutting initiative that will slash R&D spending at the automaker.

#EighthGenerationGolf #Golf #Promotions #Volkswagen #VW #VwDieselScandal

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Inside Looking Out on Oct 25, 2015

In 2006 US Government's debt was 8 trillion. 9 years later it is 18 trillion. Did US Government freeze promotions and cut bonuses and useless programs?

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- See 6 previous
- 28-Cars-Later on Oct 25, 2015
  
  Its almost as if they *want* to run it off the rails. Wait...
  
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- Lorenzo on Oct 26, 2015
  
  Not to worry - much of that borrowed money came from the Federal Reserve, which bought the treasury bonds with freshly printed currency. Normally that would mean rampant inflation, but they called it "quantitative easing" and "fiscal stimulus", so there was no inflation.
  
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- 28-Cars-Later on Oct 26, 2015
  
  @Lorenzo Its all going to come crashing down at the current rate, unfunded liabilities are something like 100T. What is the actual value of the whole nation's assets? 10T? 30? I think *they* think if everyone else's comes crashing down too it won't be as severe to them and sets things up for a fiscal reset in the form of: SDRs from IMF. What I think *they* underestimate is the growing power of Shanghai Cooperative Organization (SCO) which is really name for the new Eastern Bloc + Middle East. Look at the moves being made right now in Syria and rumored to be Northern Iraq and witness the new sphere of influence being wielded. Did you know both Netanyahu and the Saudi defense minister have met with Putin recently? Did you also know Lavrov met with the Saudis last year? Did you know neither group paid any attention to Moscow a few years ago? http://www.cnn.com/2015/09/21/world/russia-israel-netanyahu-putin-meeting/ https://www.rt.com/news/318324-putin-saudi-goals-syria/ http://english.alarabiya.net/en/News/middle-east/2014/06/20/Official-Russia-s-Lavrov-to-hold-Syria-talks-in-Saudi-Arabia-.html Things are already shaping up to be a two sided world once again except this time the West will certainly be on the lesser end. Nuclear weapons allow for political cliques to be created be they East, West, South, or North and they cannot be effectively challenged. You cannot get rid of the Soviets or the Chinese and any real attempt of color revolution has the real chance of going 1962 all over again. We have to accept we are in competition with this/these bloc(s) and we have to stop committing cultural and financial suicide in order to kick the status quo a bit further. Chess not checkers Soetoro/Biden/Kerry/Rice/Carter/Brzezinski. Idiots. You let a dilapidated Soviet gov't and military outwit you. Your predecessors spent $8T to invade and occupy a country and you pull out to create ISIS? This was the genius plan? I could craft better foreign policy on the back of a napkin. Know why House of Cards is so popular? Its the same reason West Wing was on for too long. Both shows portray a President opposite the actual one. So in West Wing it was carry over Clinton feel good crap as the world changed. Now its a President with actual brains and balls, two things which are lacking at 1600 Pennsylvania Ave these days (if we don't count Michelle).
  
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- April S on Oct 26, 2015
  
  @28-Cars-Later "with actual brains and balls, two things which are lacking at 1600 Pennsylvania Ave these days (if we don’t count Michelle)." I don't quite understand what you are saying about Mrs. Obama. Care to clarify?
  
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- JohnTaurus on Oct 26, 2015
  
  @April S What's not to understand? She had the balls and brains to get herself barred from practicing law, and she had the balls and brains to turn school lunches into something that makes a can of wet cat food look tasty by comparison. She even had the balls and brains to say that the first time she has EVER felt proud to be an American was after her husband was elected president. I guess she was proud that the nation was stupid enough to hand the keys over to a "community organizer" (whatever the hell that is) with no real experience and with the attitude that this country should be taken down a peg or two (or three, or 50). Maybe she was proud of the fact that she and her husband could force whatever crap they liked down the throats of Americans, and pretty much no one would question it, lest they be called a racist that clings to their guns and religion.
  
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- 30-mile fetch on Oct 26, 2015
  
  @April S http://www.factcheck.org/2012/06/the-obamas-law-licenses/ http://www.snopes.com/politics/obama/lawlicenses.asp And John, do you see the irony in criticizing someone for stating that they haven't been proud of their country the sentence before you state that this country was "stupid"? You two have more in common than you think! #michelleobamataurus_3.0_AX4N
  
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- Inside Looking Out on Oct 26, 2015
  
  @28-Cars-Later "I think *they* think if everyone else’s comes crashing down too" That is true. Europe will crash first and debt in Japan is even worse. China will go into depression as a matter of fact - nobody doubts about it. What left? Russia, Brazil - you know answer already. So US bonds will be the safe heaven for almost forever until Climate change destroys planet but before that we all will move to another Galaxy - closer to the black hole so black hole will be even worse than US debt. American ingenuity - accumulate unlimited debt since the rest of world are welfare or failed states and fares worse.
  
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OldandSlow on Oct 26, 2015

There is also the fact that there are too many brands in the VW portfolio. Except for the Persian Gulf countries - are Bugatti or Ducati really that essential to VW's core business? Rolls and SEAT are two additional brands that could be spun off or in the case of SEAT merged with Skoda.

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Brettc on Oct 26, 2015

VW had their national dealer meeting last week in Orlando, and according to a post on TDI Club some sort of announcement will be coming this week about affected U.S. cars and compensation. There was mention of gift cards and some sort of amount of cash to get people out of the cars that have problems. So we'll see. Either way it's gonna be pricey for them.

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JimothyLite on Oct 26, 2015

VW to freeze promotions, with Matthias Müller as Snow Miser! Get that man a straw hat!

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- RideHeight on Oct 26, 2015
  
  I never heard of Snow Miser so I found the video. "I never want to know a day that's over 40⁰." I've been cloned!
  
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