Key Points
- Volkswagen will cut thousands of jobs and close at least three factories in Germany.
- Management is serious about these changes, not just playing a bargaining game.
- All German Volkswagen plants will be affected by these plans.
- Challenges include low demand and competition from Chinese carmakers.
- Volkswagen admits the shift to electric vehicles is happening slower than expected.
Looma News
Volkswagen is set to cut thousands of jobs and close at least three factories in Germany as part of a major restructuring effort. Daniela Cavallo, who leads the works council, confirmed this decision during a meeting with workers at the Wolfsburg headquarters. She said management is serious about these changes, emphasizing that this isn’t just a tactic for negotiations.
All German Volkswagen plants will be affected by these job cuts. While the company hasn’t shared specific numbers or the names of the factories closing, Cavallo stressed the urgency of the situation. “This is the plan of Germany’s largest industrial group to start the sell-off in its home country,” she said, highlighting the rising tensions between Volkswagen management and its workers.
Volkswagen is facing significant pressure to cut costs due to low demand in markets like China and Europe. Cavallo mentioned that both management and workers understand the challenges Volkswagen faces, especially with the slower shift to electric vehicles and the growing competition from Chinese manufacturers. However, she pointed out that there are major differences in how they propose to tackle these issues.
In September, Volkswagen hinted that the state of the auto industry could lead to factory closures and job losses in Germany. The company had historically promised job security until 2029, but current CEO Oliver Blume has warned that Germany is losing its edge as a manufacturing center and that strong action is needed to face new competition in Europe.
