Volkswagen's Planned Clear-Cut: Factories in Germany Threatened

The German automotive giant Volkswagen is once again causing a stir after it became known that the company plans to close at least three plants in Germany. This information comes from a statement by the works council leader, Daniela Cavallo, which was made during a meeting with VW employees at the company's headquarters in Wolfsburg. Cavallo clarified that not only the mentioned sites are affected but all German VW plants are under the threat of these rationalization plans. She promised to resolutely oppose the management and vigorously defend the interests of the employees. The automotive manufacturer itself has not yet commented on the reports. According to VW CEO Oliver Blume, the reason for the planned measures is the increasing pressure in the automotive sector. New competitors are entering the European market and Germany's attractiveness as a production location has decreased in recent years. In addition, the company has revoked the job protection guarantee that had existed since 1994 and is pushing for immediate action. Particularly, the competition from inexpensive Chinese electric vehicles is significantly impacting Volkswagen. Furthermore, the group's half-year results show that the ambitious savings target of ten billion euros by 2026 is at risk. In Germany, VW employs around 120,000 people across ten sites, six of which are located in Lower Saxony. IG Metall responded with sharp criticism of the closure plans. Thorsten Gröger, the regional leader of the union, is demanding sustainable future concepts at the negotiating table from Volkswagen and the company management instead of short-term cuts. Talks between the union and Volkswagen are set to continue on Wednesday.