Volkswagen is really preparing to close three German factories

Volkswagen wants to close at least three factories in Germany, lay off tens of thousands of employees and permanently downsize its remaining plants in the country.

Confirming the news, reported by Reuters, was the head of the works council herself, Daniela Cavallo, who in front of the Wolfsburg workers reiterated that the Volkswagen management is 'absolutely serious' about this and that this is in no way an action by the company to sabotage collective bargaining.

The distance between workers and company

Cavallo did not specify which plants these are and exactly how many cuts will be made to Volkswagen's workforce, which now totals almost 300,000 employees, but added:

"This is the plan of Germany's largest industrial group to start the sell-off in its home country of Germany."

Daniela Cavallo, President of the Volkswagen Works Council

The representative of the workers, who have been united for weeks in a tug-of-war with the German group against the announced cuts, also said that the parties agree on the nature of the problems facing Volkswagen, but that they are far apart on the answers.

Workers suspend production at 11 Volkswagen factories

Therefore, as Automotive News Europe reports, Volkswagen workers have suspended production at eleven German plants to demonstrate against the cuts. This kicks off a difficult week in relations between the company and the workers that will culminate on 30 October with the publication of the results for the third quarter of 2024, which could show a further drop in sales and profits.

According to the German business newspaper Handelsblatt, among the cuts planned by Volkswagen would be a 10 per cent reduction in wages, a halt to wage increases for two years, manoeuvres Volkswagen needed to save €4 billion (£3.3 million).

Volkswagen's problems mounting:

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