Describing the predicament as an emergency, Ferdinand Piech, Volkswagen chairman, announced a halving of planned investment to DM6bn and a radical shakeup of the management.
'In just a few years we must already have overcome most of our cost disadvantages vis-a-vis the Japanese,' Mr Piech said.
Of the nine management hierarchies, six are to be axed. And by instituting a system of 'centres of excellence' VW is to put quality back at the centre of its strategy, recognition that standards have slipped considerably in recent years.
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