Volkswagen (VW) tightens its savings course for the core brand and, for the first time in 30 years, no longer rules out layoffs and plant closures. The previous measures, such as partial retirement and severance payments, are no longer sufficient to achieve the targeted savings goals. The company announced these drastic steps on Monday. This puts Europe’s largest car manufacturer before one of the toughest tests in its recent history.
At the same time, VW CEO Oliver Blume is planning a comprehensive realignment of the company by 2035. During an executive meeting in Stockholm, he provided initial insights into the strategy that is set to replace the 'Strategy 2030' developed by his predecessor Herbert Diess. The new 'Group Strategy 2035' aims to make VW the world's leading technology company in the automotive sector by focusing on areas such as design, software, and battery technology. However, the exact details of this strategy are yet to be determined.
Prime Minister of Lower Saxony, Stephan Weil, who sits on VW's supervisory board, expresses concern over possible plant closures. He demands that alternatives be explored first. "VW must remain competitive, but plant closures should not be the first step," Weil explained to NDR Info. The state of Lower Saxony is closely intertwined with the decisions of the corporation as a major shareholder.
IG Metall Union Also Responded Sharply to the Company's Announcements. A Four-Day Workweek is Being Discussed as a Possible Solution to Avoid Layoffs. 'The Employees Must Not Be the Victims,' Emphasized Christiane Benner, Chairwoman of IG Metall. The Works Council and the Union Demand Swift Talks with Management to Provide Clarity for the Workforce.
In Zwickau, one of Volkswagen's key locations in Saxony, approximately 5,000 employees took to the streets to protest against impending layoffs. The factory, which has been completely converted to electric vehicle production, is falling far short of sales expectations. Hundreds of temporary contracts have already not been renewed, and the night shift has been canceled.
