Volkswagen AG is considering an unprecedented move to close factories in Germany as part of its cost-cutting program, VW CEO Oliver Blume told local media on Monday.
"Even plant closures of vehicle manufacturing and component sites can in the current situation, no longer without quick countermeasures be excluded," Blume stated after a management meeting. Furthermore, operational layoffs at the core VW brand are now being considered and the company is no longer guaranteeing job security, despite previously ruling out redundancies until 2029.
If implemented, these factory closures would be the first in Germany in Volkswagen's 87-year history. The head of the carmaker's works council, Daniela Cavallo, expressed her concern, referring to it as a "major conflict" and announced their intention to put up "bitter resistance" in response to the announcement. "The result is an attack on our employment, locations and collective agreements."
