Volkswagen plans to close at least three German factories: workers council

Volkswagen has informed worker representatives that it wants to close at least three factories in Germany, according to the head of the company’s works council.

Employee council head Daniela Cavallo told a meeting with Volkswagen workers at the company’s headquarters in Wolfsburg that management also plans cuts at other plants and pledged to resist those plans, German news agency dpa reported. .

He said: “All German VW plants are affected by these plans. No one is safe.”

The company did not give details of its plans, but chief of staff Gunnar Kilian said in a statement that “the fact is that the situation is serious and the responsibility of the negotiating partners is enormous,” dpa reported.

Volkswagen said in early September that auto industry headwinds mean it cannot rule out plant closures in its home country, and must abandon a labor protection pledge in place since 1994 that would have banned layoffs until 2029.

CEO Oliver Blume cited the entry of new competitors into European markets, Germany’s deteriorating position as a manufacturing location and the need to “act decisively.”

“Without comprehensive measures to restore competitiveness, we will not be able to afford significant investments in the future,” Kilian said.

He added that management will stick to the principle of discussing Volkswagen’s future first with its internal negotiating partners.

Wage negotiations between Volkswagen and the union will resume on Wednesday.

European carmakers face increased competition from cheap Chinese electric cars. Volkswagen said last month that the company’s half-year results indicated it would miss its target of 10 billion euros (£8.32 billion) in cost savings by 2026.

Volkswagen has about 120,000 employees in Germany, where it has 10 factories, six of them in the northern state of Lower Saxony, including Wolfsburg.

Industrial union IG Metall sharply criticized VW’s closure plans.

“We hope that, instead of fantasies of cuts, Volkswagen and its management will outline sustainable concepts for the future at the negotiating table,” said regional union leader Thorsten Groger.