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Oliver Wyman Review Faults DB Cargo Turnaround Plan, Intensifying Pressure on CEO

EU state-aid rules require the rail-freight unit to return to profit next year.

Overview

  • The internal assessment says the current rescue plan is not objectively suitable to secure sustainable profitability or competitiveness and relies on very optimistic assumptions.
  • The consultants note a turnaround remains possible in principle but say the strategy lacks sufficiently concrete, credible measures.
  • Under the EU ruling, Deutsche Bahn may no longer cover DB Cargo’s deficits, creating a hard profitability deadline next year.
  • Management’s approach centers on deep headcount cuts, workshop closures, and vehicle sales, with added bets on subsidised single-wagon traffic that has not proven profitable.
  • The EVG union has called for Sigrid Nikutta’s removal, citing about €3.1 billion in losses since her appointment, and Deutsche Bahn, which commissioned the study, has not commented.