Volkswagen's labour chief warns of mass layoffs, plant closures in Germany
LONDON (Reuters) -Volkswagen plans to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul, the carmaker's works council head said on Monday.
Volkswagen's employee council says the automaker plans to close at least 3 German plants
Volkswagen has informed employee representatives that it wants to close at least three plants in Germany, the head of the company's works council said Monday.Employee council chief Daniela Cavallo said at a meeting with Volkswagen workers at the company's Wolfsburg headquarters that management also plans cuts at other sites, and pledged to resist the plans, German news agency dpa reported. She said that “all German VW plants are affected by these plans. None is safe."There was no immediate comment from the company itself.Volkswagen said in early September that auto industry headwinds mean it can’t rule out plant closures...
German states urge VW not to close automobile manufacturing plants
Four German states are urging ailing carmaker Volkswagen not to close automobile manufacturing plants in the country. In joint position paper, the economy ministers of Lower Saxony, Saxony, Hesse and Berlin said their top goal is to maintain all manufacturing sites. "This means that the individual sites will not be played off against each other," the ministers said in the position paper dated October 10 and which surfaced on Monday. The state ministers also reject "harsh cuts" at the expense of employees. In the future, a new, long-term contract to secure employment must ensure that jobs are protected and expertise is retained, the ministers...
Germany's auto giants are struggling to stay relevant
Major domestic manufacturers such as Volkswagen, Mercedes-Benz Group and BMW have issued profit warnings in recent weeks. The warnings come amid the specter of historic job cuts and possible German plant closures at Volkswagen, an abrupt end to Germany's electric car subsidy program and Berlin's recent failure to prevent fellow European Union member states from voting in favor of EU tariffs on Chinese EVs.