Volkswagen China Clarifies KI 10 Project Rumors: Aims To Improve Efficiency, Not Layoffs

On June 6, according to a report by Caixin, Volkswagen China addressed rumors about the establishment of a "K10" performance project aimed at reducing personnel costs by 20% over the next three years. Volkswagen China clarified that "KI 10" (KEY Initiative) is an Efficiency Plan proposed by the headquarters, aiming to improve efficiency by 20% over three years starting from 2023, including Volkswagen China. The 20% improvement target refers to an increase in indirect labor costs, not layoffs.