Volkswagen plans group downsizings
Date
11/6/2024 7:27:55 AM
(MENAFN) Volkswagen is planning significant workforce reductions and the closure of several factories in Germany as part of a major restructuring effort aimed at cutting costs and improving profitability, according to the head of the company's Works Council, Daniela Cavallo. She confirmed that management is serious about these plans, noting that this is not just a bargaining tactic during collective negotiations.
Cavallo highlighted that Volkswagen, which has never shut down a plant in its home country in nearly 90 years, is now preparing to close some of its ten German facilities. Although specific details about which plants will be affected or how many of the company’s roughly 300,000 German employees will be laid off remain unclear, Cavallo warned that all locations will be impacted by the changes, and no facility is guaranteed to remain open.
Additionally, Volkswagen is seeking a 10% pay reduction and has announced there will be no pay raises for the next two years. Cavallo expressed concern that these moves would lead to mass unemployment for tens of thousands of workers.
She also called on the German government to act swiftly to protect the country's economy, as Volkswagen and other European manufacturers face challenges, including slower progress in the shift to electric vehicles and increasing competition from Chinese car brands entering the European market.
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