Volkswagen brand “no longer competitive” says company official

Automaker talking efficiency, Chattanooga workers getting pay raise after UAW strike

WOLFSBURG, Germany (WDEF) – The Volkswagen brand got a stark warning today from one of their own.

The automaker posted the assessment from their brand chief on their website in Germany.

Thomas Schaefer told staff that the original brand is “no longer competitive.”

That assessment comes as Volkswagen is discussing cost-cutting with their works council in a bid to boost efficiency.

The meeting revealed that the company is proposing staff cuts by offering early retirement plans.

And other streamlining proposals lay ahead.

But the tone has been much different at the Volkswagen plant in Chattanooga over the last week.

Volkswagen of America announced an 11% pay hike will go into effect at the plant beginning in December.

Company officials say they are also speeding up the time scale for when workers can qualify for higher pay.

Several non-union automakers in the U.S. have announced pay raises since the new UAW deal was struck with Ford.