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28 October 2024 | 21:48
Volkswagen plans to close three factories in Germany
Tengrinews.kz - Volkswagen has announced plans to close three factories in Germany and cut thousands of jobs as demand in China and Europe slumps and the transition to electric vehicles becomes more difficult.
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Tengrinews.kz - Volkswagen has announced plans to close three factories in Germany and cut thousands of jobs as demand in China and Europe slumps and the transition to electric vehicles becomes more difficult.
According to German media, the cuts also include a 10% pay cut for the remaining employees and a two-year salary freeze in 2025 and 2026. The company plans to cancel monthly bonuses and other benefits.
"This is the plan of Germany's largest industrial group to start the sell-off in its home country," said Daniela Cavallo, General Works Council Chairwoman, speaking at VW’s main plant in Wolfsburg.
Cavallo also stressed that all German VW plants are at risk of closure.
This statement comes after Volkswagen issued its second profit warning in three months. Unions are demanding greater clarity about the company's future and calling for a comprehensive plan for the transition to electric vehicles.
According to the CEO of the Volkswagen Passenger Cars brand, Thomas Schafer, the company needs to reduce production costs.
"We have to get to the root of the problem: We are not productive enough at our German plants and our production costs are currently 25 to 50 percent above target," Schafer said.
Negotiations between Volkswagen management and the unions will continue on Wednesday, when the company also publishes its third-quarter financial results.
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