Volkswagen, the German automobile giant, is reportedly considering shuttering at least three of its factories within Germany, which could result in the dismissal of thousands of workers and a 10% reduction in pay.
These drastic measures arise from sluggish sales and tepid growth in the electric vehicle (EV) sector, further challenged by escalating competition from Chinese manufacturers.
"We are looking at the potential closure of a minimum of three facilities in Germany," Daniela Cavallo, the works council head, informed employees at Volkswagen's headquarters in Wolfsburg. Remaining production sites are expected to operate at reduced capacity.
Volkswagen currently operates 10 plants in Germany, employing approximately 300,000 individuals. If executed, these closures would represent the company's first domestic plant shutdowns.
Among the sites affected, the factory in Osnabrück—having recently lost a crucial contract with Porsche—is anticipated to face closure. This decision could trigger widespread layoffs, impacting potentially tens of thousands of positions, with entire departments facing shutdowns or transfers abroad.
"Every German VW facility is impacted by these considerations," stated Cavallo. "No site is exempt."
In response, Volkswagen's works council, which advocates for the company's workforce and holds half the seats on the supervisory board, has expressed firm opposition to the proposed restructuring moves.
