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Volkswagen will close three factories in Germany, will reduce wages by 10 percent

2024-10-28 17:53:34Biznes SHKRUAR NGA REDAKSIA VOX
Volkswagen will close three factories in Germany, will reduce wages by 10
Volkswagen

Volkswagen bosses are preparing to close three German plants and lay off "tens of thousands" of workers, the car giant's top employee representative has claimed.

The German car giant is also planning to cut pay by 10 percent as part of a wider overhaul, according to VW's works council, which represents senior employees.

Daniela Cavallo, head of the group, told hundreds of staff about the plans during a meeting at the company's Wolfsburg factory on Monday.

"Management is absolutely serious about all this. This is no joke in the collective bargaining round. This is the plan of Germany's largest industrial group to start selling in its home country, Germany," he said.

Volkswagen is under pressure to cut costs and stay competitive amid weaker demand from China and Europe, and as it struggles to finance a shift to electric vehicles. VW has lagged behind competitors in China in developing battery cars.

Thomas Schaefer, who heads the Volkswagen brand within the wider group, said: “We're not making enough money with our cars at the moment. At the same time, our costs for energy, materials and personnel have continued to increase. This calculation cannot work in the long run.”

He said some individual factories were twice as expensive as rivals, adding: “We cannot continue as before. We must quickly find a common and sustainable solution for the future of our company."


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