The head of Volkswagen’s labor council stated on Monday that the firm has notified representatives of its intention to close at least three sites in Germany.
At a meeting with Volkswagen employees at the company’s Wolfsburg headquarters, Daniela Cavallo, the chairwoman of the employee council, stated that management also intends layoffs at other locations and promised to oppose the plans, according to the German news agency dpa.
“These plans affect all German VW plants,” she stated. Nobody is safe.
The business withheld information about its plans.
However, according to a statement from chief personnel officer Gunnar Kilian, “the fact is that the situation is serious and the responsibility of the negotiating partners is enormous,” according to DPA.
Volkswagen stated in early September that it could not rule out plant closures in its native country due to headwinds facing the car industry and that it must revoke a 1994 job protection guarantee that would have prohibited layoffs until 2029.
Oliver Blume, the CEO, mentioned the need to “act decisively,” the entry of new competitors into European markets, and Germany’s declining standing as a manufacturing center.
“We will not be able to afford significant future investments unless we take comprehensive measures to restore competitiveness,” Kilian stated on Monday.
Laptops 1000He went on to say that management will adhere to the rule that internal negotiating partners should be the first to discuss Volkswagen’s future.
Volkswagen and the union are scheduled to continue pay talks on Wednesday.
Cheap Chinese electric vehicles are becoming a bigger threat to European automakers.
Last month, Volkswagen announced that its half-year results showed it would fall short of its 2026 cost-cutting goal of 10 billion euros ($10.8 billion).
Volkswagen employs about 120,000 people in Germany, where it has ten plants, including Wolfsburg, in the northern state of Lower Saxony.
VW’s stated closure intentions drew harsh criticism from the IG Metal trade union.
Regional union leader Thorsten Gröger stated, “We expect that Volkswagen and its management will sketch out sustainable concepts for the future at the negotiating table, rather than cutback fantasies.”
