Volkswagen to close 3 factories at once!

Daniela Cavallo, head of the Volkswagen Works Council representing the company's employees, stated during a briefing for workers in Wolfsburg, where the German manufacturer is headquartered, that "the board of management wants to close at least three Volkswagen factories in Germany."

Pointing out that other Volkswagen facilities in the country will also be downsized, Cavallo reported that the company's board of management is planning layoffs.

Cavallo said, "The board also plans to downsize all remaining factories in this country. In concrete terms, this means a reduction in products, volumes, shifts, and the entire assembly line. The management is absolutely serious about this. This is not just saber-rattling in the collective bargaining round; all Volkswagen facilities in Germany are affected by these plans. None of them are safe."

Stating that the German government must urgently prepare a master plan for German industry, Cavallo said this would stop the decline of the industry.

Cavallo did not provide information on which factories in Germany would be affected by the closures or how many of the Volkswagen Group's approximately 300,000 employees in Germany could be laid off.

Emphasizing her opposition to the Volkswagen Board of Management's plans, Volkswagen Works Council Chair Daniela Cavallo said, "I can only warn all board members and everyone at the top of the company: Do not mess with us, the VW workforce."

WILL CLOSE ITS FACTORIES IN GERMANY FOR THE FIRST TIME

In early September 2024, Volkswagen announced that it would close its factories in Germany for the first time in its history as part of savings and cost-cutting measures, and that it would terminate its 30-year employment protection agreement 5 years early. The company cited high energy and labor costs in Europe reducing its competitiveness and declining sales as the reasons for this decision.

Volkswagen, which abandoned its factory investment plans in Turkey in 2020, caused an "earthquake" in the German automotive sector by considering the closure of its factories in Germany for the first time in its history and terminating a 30-year employment protection agreement early as part of its savings and cost-cutting measures.

Volkswagen has been negotiating with unions for weeks over restructuring and cost-reduction plans.

German union leaders had previously threatened Volkswagen with strikes, warning the company not to make a "historic mistake" by laying off workers. The Volkswagen Group employs approximately 650,000 people across 114 production facilities in 17 European countries and 10 countries in the Americas, Asia, and Africa.

THE COMPANY EMPLOYS 300,000 PEOPLE IN GERMANY

As part of its 10 billion euro savings and cost-cutting measures by 2026, the Volkswagen Group had planned to reduce personnel costs by one-fifth by 2026. Meanwhile, German automakers have been facing inflationary pressures, high energy costs, slow economic growth in Europe, the rise of the far-right, and competition from Chinese manufacturers as well as Tesla.

German automakers, which export approximately 280 billion euros annually, are under significant pressure to cut costs and maintain competitiveness in light of weak demand from China and Europe.

The transition to electric vehicles continues to be challenging for Germany's automotive sector due to various regulations within the country and the European Union (EU), as well as raw material supply issues. While the sector is making massive investments in battery technology, it is forced to grapple with rising costs.

News Source: 12punto