VW cuts bonuses to German workers by 4%
VW'S Wolfsburg workers, seen here building Tiguan SUVs, will get a reduced bonus.
Photo credit: Reuters
BERLIN (Reuters) -- Volkswagen today said it will pay its German workers a 7,200-euro ($9,400) bonus for 2012, a reduction of 4 percent on the previous year's payout despite Europe's biggest carmaker posting record profits and sales last year.
VW is reining in bonuses for factory workers and top executives at a time when the Wolfsburg-based company is bracing for tougher competition in its home and global auto markets. VW said last week that the group operating profit in 2013 may be flat.
The manufacturer's supervisory board took steps last week to limit bonuses for top executives, capping CEO Martin Winterkorn's total 2012 pay at 14.5 million euros.
A year earlier Winterkorn earned 17.5 million euros in fixed salary, bonuses and incentives which caused a public outcry in Germany about excessive manager pay.Contact Automotive News